t 


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Classificatior 
,«»♦«-  ■    -  I  >-f    -   ,  -     QNRE3TR 

AA    000  623  542    8 
rnwuinp-MTiA-  &*▼•   of  Hist- rical    ru  ---^ 

CONFIDENTIAL       ^     ^  (^     bkte  Aug.    7,    1947 


MEMORANDUM  FOR  THE  SECRETA^OF  STATER 
ON  THE  DOMINICAN  REPl'BUfcPR5    1948  *j 

J-.IB- 


PRESENT  CONDITIONS  OBSERVED  DURING  A  RECENT 
VISIT— FINANCIAL  SITUATION— HISTORICAL  NOTES- 
AMERICAN     INTERESTS-SOME     SUGGESTIONS. 


March  /?,  rpo4. 

The  Dominican  Republic  is  approaching— indeed,  if  it  has  not 
already  reached — a  state  of  anarchy.  The  Provisional  Government  of 
des  controls  only  those  cities  which  his  forces  occupy.  His 
(  ,  nt  is  probably  growing  stronger,  but  it  docs  not  dominate 

the  country  and  can  not  guarantee  security  to  life  or  property  out- 
side of  the  six  or  eight  principal  cities  and  their  environments 

For  weeks,  bands  of  marauders,  often  owing  allegiance  to  no 
cause  and  to  no  leader,  save  some  small  guerrilla  chieftain,  have 
taken  up  positions  in  the  immediate  vicinity  of  the  capital  and  fired 
volleys  from  their  Mausers  into  the  streets  and  houses  with  fatal 
Up  to  the  middle  of  February  Santo  Domingo  City  was  in 
a  st.  and  has  been  in  a  state  of  siege  much  of  the  time 

during  the  last  three  months.  During  this  period  the  house  of  the 
Ameri.  an  •  d'affaires  on  the  outskirts  of  the  town  was  pier,  ed 

by  twenty  sheds.  Almost  daily  people  are  wounded  or  killed  in  the 
stre,  the  city  by  some   guerrilla,  who  fires   from   the  heavy  un- 

derbrush across  the  river.  Our  naval  vessels  have  been  fired  at 
upon  more  than  om  ion   by  artillery  ami  rifles.     One  noncom- 

missioned officer  was  killed  and  an  enlisted  man  re,  rived  a  Mauser 
bullet  in  his  hat.  The  American  charge*  d'affaires  says  the  killing 
was  deliberate  and  done  by  the  direction  ol  one  ol  the  insurgent 
whose  name  he  has.  An  American  steamer,  whii  h  a  naval 
launch  was  escorting  to  her  dock  at  Santo  Domingo  City,  was  struck 
by  more  than  twenty  rifle  bullets,  tired  by  the  Jiminez  faction. 

The  big  sugar  estates  15  miles  above  Santo  Domingo  (  ity,  on 
the    river,    have    suffered    greatly    from   depredation,   and    reel 
sho<  on  the  par!  ol   the   Jiminez  followers  and   to  tenl 

from   the   G     ernmenl    forces,  though   the    latter   propose  to  make 
all  the  losses  which  the)   have  1  aused. 


The  large  and  important  American  interests  al  and  near  San 
Pedro  Macoris  have  been  greatly  damaged  by  being  brought  within 
the  theater  for  fighting  and  plunder  by  roving  bands.  Americans 
have  invested  in  this  vicinity  something  more  than  $6, 000,000  in  the 
sugar  industry  alone.  The  total  American  investments  in  the  Do- 
minican Republic  of  an  importanl  and  active  sort  are  estimated  to 
be  worth  about  Sjo, 000,000. 

We  found  San  Pedro  Macoris,  aboul  to  miles  east  of  the  capital 
on  the  coast,  in  the  hands  of  an  insurgent  leader,  who  holds  reso- 
lutely to  it  for  the  purpose  of  appropriating  customs  receipts.  It 
has  yielded  him  aboul  S.^o.ooo  in  the  last  ten  days.  General  Morales 
proposes  t<>  capture  tins  place,  and  in  the  fighting  which  will  ensue 
it  is  probable  that  foreign  interests  will  suffer  severely. 

Tin'  point  which  most  gravely  impresses  the  observer  is  that  the 
so-called  revolutionary  movement  headed  by  Jiminez  is  no  longer 
controlled  by  him.  It  is  controlled  by  no  one.  It  is  now  largely 
carried  on  by  independent  country  guerrilla  leaders  who  owe  alle- 
giance to  no  one  and  pillage  the  country  at  will,  and  who  apparently 
have  just  two  ends  in  view — first,  to  live  without  work;  second,  to 
get  possession,  if  possible,  of  a  custom-house  for  the  sake  of  dispos- 
i  ng  of  its  receipts.  The  frequent  and  sometimes  bloody  civil  wars  in 
the  Dominican  Republic  are  not  the  outgrowth  of  an  honest  differ- 
ence of  opinion  or  of  a  conflict  of  ideas  or  of  the  defense  or  assertion 
of  some  principle  of  policy  of  governmental  action,  but  are  shame- 
less, sordid  struggles  for  the  privilege  of  controlling  custom-houses 
and  disposing  of  their  revenues.  The  country  is  largely  in  the  grasp 
of  desperately  selfish,  irresponsible  political  brigands.  Many  of 
these  guerrilla  leaders  are  little  better  than  savages  as  far  as  their 
ideas  of  property  rights  and  the  rights  of  those  weaker  than  them- 
selves are  concerned. 

This  country  has  enjoyed  so-called  independence  for  about  sixty 
years.  During  that  period  more  than  $100,000,000  has  been  col- 
lected in  the  aggregate  by  the  various  Governments,  and  there  is 
nothing  to  show  that  even  one-twentieth  part  of  this  amount  has 
been  expended  for  the  benefit  of  the  Republic  or  the  people  or  for 
public  improvements  of  any  kind  whatsoever.  You  may  search  the 
whole  island  in  vain  for  a  score  of  miles  of  good  highways,  for 
modern  adequate  sanitary  equipment,  for  suitable  buildings  for  edu- 
cational purposes,  or  for  anything  which  makes  life  better  worth  the 
living.  This  vast  sum  of  money  which  has  been  taken  from  the 
people  has  been  appropriated  either  for  individual  uses  or  wasted  in 
unpatriotic,  selfish  civil  war. 

At  Puerto  Plata,  where  I  spent  one  night  ashore,  they  were 
expecting  an  early  attack  from  guerrilla  bands,  which  were  then  not 


SRLF 
YRL 

[00370302 


more  than  3  miles  from  the  city.      I  was  warned   that   I  would  prob- 
ably  have   to  leave   my  bedroom    during   the    night   and    go   to   the 
cellar  to  escape  the  fire  of   Mauser  bullets.      This  is  one  <>i  the  n 
important  in  the  country,  and  from  it  a  railway  runs  to  Santi- 

ago, the  chief  commercial  city  of  the  Republic.  This  line  of  rail- 
way. 60  miles  in  length,  is  owned  and  rated  by  American 
citizens. 

Puerto  Plata  is  the  home        President   Morales.      1  made  careful 
inquiri-  it  him  from  many  -  rid    find   that    he   is  consid- 

i    an    intelligent,  well-meaning    man — one  who  is    believed    to  be 
hon<    '         >th    in   his   public  and   private  ity.      I  had  a  l<  ng  talk 

with    his   chief   military  supporter.  General    C  vernor   of 

Puerto  Plata,  w:  1  earnest,  energetic  young  man.  and  who  be- 

implicitly  in  the  patriotism   ol    Morales  and   in   his  power  to 
maintain  himself.     The  American  1  harge  d'affaires  -it  Santo  Domingo 

Cit\  tnion    1        G     neral     Morales.       I     found    in     Puerto 

l  number  y  well-informed  and  intelligent  Ameii- 

ns 

At  Sosua  is  situated   1  eat  banana  plantation  of  the  United 

Fruit  Company,  comprisii  ne  20,000  acres,  one-fourth  of  which 

is  ii'  lltivation  and    producing    fruit.       This    large  estate  has  its 

Own  railwi  mploys  '>oo  men        Two  battles    have  been 

grit  upon  i;  recentlj  and  the  manager,  Mr.  Wetmore,  told  me  he 

had   to  mily  in  a  hut   in   the  woods   for  several  days. 

thickly  about  his  nous 
At  Santo  Domii        Cit        iwing   i"  th<  that   there  had  been 

id   that   the   insurgents  were  supposed   to 
am »w  river  opposite  the  capital, 
prudent  I 

he  tut  1.  •   I  •  •  tminican  Republic 

ative,  ]  u  ning, 

..t   nationalit) 
and  with  evident  favor  ol 

Moi  ales  and  t  lie  polit  ieians 

"t   a   perma- 

us  t  o  m  • 

1  .    .  ernmenl   ol   t  he 

:    the   (  ust.iins  would   put 

mi  by  1  he  natives,  1,, 1   the 

■    t' .  (  onflu  t.  and  for 

■  •.-.  •   ild  make  impossible  the  importation 

1   1  ustom  in  mses  there 


would  be  nothing  for  the  revolutionists  to   fight    for.     The  agricul- 
tural element  in  the  population   probably  would   favor  this,  and  all 

ses  would,  I  think,  save  the  rather  small  contingent  of  military 
political  freebooters  who  have  nothing  to  lose  and  much  to  gain  by 
maintaining  a  state  of  anarchy  in  the  country. 

[f  the  Government  of  the  Dominican  Republic  surrendered  the 
administration  o\  its  fiscal  department  to  the  United  States  it  would 
then  be  relieved  of  the  necessity  of  fighting  for  t lie  custom  houses  and 
could  concentrate  all  its  military  energies  upon  maintaining  peace 
in  the  interior.  General  Morales  is  willing  and  even  desirous  of 
making  some  such  arrangement  with  this  country,  and,  in  connec- 
tion with  it,  giving  us  a  long  lease  of  Samana  Bay,  for  which  he 
would  expect  to  receive  a  cash  money  consideration.  lie  would 
probably  be  satisfied  with  $100,000  in  hand  and  $150,000  paid  in 
half  a  dozen  annual  installments.  Morales  wotdd  also  agree  to  a 
supervision  by  us  of  public  expenditures.  Custom-house  receipts 
should  in  the  first  year  be  more  than  sufficient  to  pay  the  annual 
budget  of  the  Government  and  the  interest  upon  all  of  its  foreign 
debt.  Any  surplus  remaining  should  at  once  be  expended  for  the 
purpose  of  building  roads  and  highways,  which  would  give  employ- 
ment to  many  of  the  people  who  are  now  engaged  in  the  business 
of  revolution.  I  am  informed  upon  highly  competent  authority 
that  the  common  soldiers  would  be  glad  of  an  opportunity  to  earn 
75  cents  per  day  at  roadmaking,  and  that  the  officers  would  be  glad 
of  employment  as  superintendents  and  timekeepers.  The  building 
of  good  highways  is  one  of  the  most  pressing  needs  of  the  country. 

The  Dominican  Republic  is,  to  my  mind  and  in  the  opinion  of 
those  who  know  more  of  it  than  I  do,  the  most  attractive,  fertile, 
salubrious  spot  of  all  the  West  Indian  Islands.  It  has  a  wonderful 
diversity"  of  climate,  soil,  and  altitude,- adapted  to  the  production  of 
all  manner  of  fruits,  vegetables,  grains,  and  grasses.  It  produces 
excellent  cattle.  The  altitudes  vary  from  sea  level  to  heights  of 
more  than  10,000  feet.  It  is  an  uncommonly  well-watered  coun- 
try. It  has  a  sufficient  number  of  good  harbors  and  a  climate, 
especially  along  the  north  coast,  ideal.  The  beauty  of  the  scenery 
is  unsurpassed. 

I  [NANCIAL    SITUATION. 

In  the  consideration  of  the  present  situation  in  the  Dominican 
Republic,  and  of  the  possibilities  of  international  complications  re- 
garding it,  one  of  the  most  important  elements  to  be  taken  into  ac- 
count is  that  of  foreign  debts  and  claims. 


The  bonded  indebtedness  of  the  Dominican  Republic  now  out- 
standing is  as  follows: 

Unified  4   per  cent  scrip  and    French-American  reclamation   consuls 

14  per  cent) -.  600 

Obligations  Or  de  St.  Domingue.  2;4  percent 

Total  amount  of  Dominican  debt 3.885,350 

The  "obligations  Or  de  St.  Domingue."  2-;4  per  cent,  are  held 
chiefly  in  Belgium — say,  to  the  amount  of  /':.ooo,ooo.  A  consider- 
able number  arc  held  in  Holland,  scattering  amounts  in  Germany 
and  France,  and  about  ^25,000  in  England. 

Of  the  ^1,148,600  of  4  per  cent  scrip  ami  bonds,  about  ^825,- 
000  to  ^850,000  are  held  in  the  United  States  and  in  England; 
the  remainder  in  France.  Of  the  amount  held  in  England  and  the 
United  States,  not  exceeding  ^150,000  arc  owned  in  England; 
the  remainder,  about  ^700,000,  are  owned  in  the  United  States,  but 
a  considerable  portion  is  pledged  to  creditors  in  England. 

The  bonds  owned  in  America  are  those  of  the  San  Domingo  Im- 
provement Company  and  its  allies,  and  such  of  these  bonds  as  are 
pledged  in  England  are  pledged  to  friends  of  that  company,  with 
very  tew  exceptions.  All  the  bonds  held  in  England,  whether  owned 
there  or  only  pledged,  are  represented  l>y  the  Count  il  of  Foreign 
Bondholders,  who  are  acting  in  entire  harmony  with  the  Improve- 
ment Company. 

The  total   indebted)  '   the  Dominican    Republic  will   not   l>e 

than  s^5,ooo,ooo. 

As  to  the  disposition  of  the  bondholders  outside  of   the   United 
md  the  attitude  and  probable  intentions  of  their  governments, 
there  may  be  mentioned  the  following 

1 11    1 1.  <  ;  .:il',. mdholders,    in 

d    to    t  he    I  hit  idi    G       ■  nment    to    instruct    Lord 

■  ininui.  m   with   the   United   States 

G  hi  1  he  ob  ction,  so  as  to  put 

Domii  G         nment  ne  to  an  immediate 

D  Impi  o\  emenl  Company,  under 

whi<  h   t lie  «  ompany 

It    was   undersl 

dholde  ok    this  step   in    the 

I   States,  as  proved   i"  be 

the  11  in  behall  ol  its «  itiz< 

but    il  "in  il   would   have  asked  the 

1  a  dish  subje<  tS  imle- 

:  to  a<  t 


The  British  consul  in  Santo  Domingo,  early  in  1902,  was  in- 
structed by  his  Government  to  cooperate  with  the  charge"  d'affaires 
of  the  United  Stairs,  and  a  copy  or  the  purport  of  these  instructions 
was  communicated  by  the  consul  to  the  Dominican  Government. 

As  the  result  of  the  interposition  of  the  United  Slates,  which  was 
followed  by  a  long  negotiation,  a  protocol  was  concluded  between 
the  two  Governments  January  31,  1903,  under  which  the  claims  of 
the  San  Domingo  Improvement  Company  and  its  allies  were  settled 
for  the  sum  («l  $4,500,000,  to  be  paid  in  annual  installments,  the 
amount  of  which  was  to  be  determined  by  arbitration.  The  board 
of  arbitration  has  been  organized,  but  all  the  monthly  sums  which 
the  Dominican  Government  agreed  to  pay  pending  the  arbitration 
remain  in  default  except  the  first,  which  was  for  January,    1903. 

Since  the  signature  of  the  protocol  of  January  31,  1903,  the 
council  of  Foreign  Bondholders  has  been  resting  in  reliance  upon 
the  successful  issue  of  the  interposition  of  the  1'nited  States.  The 
attitude  of  the  council  remains  unchanged. 

The  interests  of  the  bondholders  on  the  continent  of  Europe  are 
represented  by  two  associations.  One  of  these  is  the  Association 
for  the  Protection  of  the  Holders  of  Public  Securities  (Comite  de 
Defense  des  Porteurs  de  Rentes  Dominicaines),  with  headquarters 
at  Antwerp  and  a  branch  at  Brussels.  Of  this  association  there  is  a 
special  committee  devoted  to  the  interests  of  the  holders  of  Domini- 
can securities. 

The  other  association  is  known  as  the  National  Association  of 
French  Holders  of  Foreign  Securities  (Association  Nationale  des 
Porteurs  Francais  de  Valeurs  Etrangeres),  and  it  also  has  a  special 
committee  charged  with  the  interests  of  the  French  holders  of  the 
Dominican  debt. 

These  associations,  representing  the  2^  per  cent  bonds  and  such 
of  the  4  per  cent  bonds  as  were  held  in  France,  entered,  in  June, 
1901,  into  a  contract  with  the  Dominican  Government,  under  which 
they  accepted,  in  lieu  of  the  general  security,  a  special  security, 
during    the   life  of  the    contract,  of    15    per  cent   of   the    Dominican 

■nues,  equal  to  not  less  than  $300,000  per  annum,  specially  se- 
cured upon  the  customs  revenues  of  Santo  Domingo  City,  and,  in 
case  of  need,  those  of  Macoris,  and  no  others. 

Considerable  sums  were  paid  under  this  contract,  although  ir- 
regularly. The  interest  and  disposition  of  tin-  French  Government 
in  the  matter  was  exhibited  in  June  last,  when  the  French  ambassa- 
dor at  Washington,  on  the  8th  day  of  that  month,  addressed  to  the 
Secretary  of  State  a  note,  hereto  annexed  as  Exhibit  B,  officially 
calling  attention  to  the  interests  of  French  citizens  under  the  French- 
Belgian  contract  of  1901,  and  reserving  their  rights  under  that  con- 


tract  as  against  an}'  possible  award  that  might  be  rendered  under 
the  protocol  between  the  United  States  and  the  Dominican  Republic 
of  January  31,   1903. 

FRENCH    INTERVI  N  HON. 

Still  later,  in  September  of  last  year,  the  French  charge^  d'affaires 
in  Santo  Domingo  successfully  intervened  in  order  temporarily  to 
divert  the  moneys  that  were  being  paid  on  the  interior  floating 
debt  to  the  payment  of  the  sums  due  under  the  French-Belgian  con- 
tract of  1901.  It  may  also  be  pointed  out  that  under  the  com 
the  French  and  Belgian  bondholders  have  special  representatives  in 
Santo  Domingo  with  important  powers  in  respect  to  the  custom- 
houses; and  it  was  in  support  of  the  demands  of  such  representa- 
tives that  the  French  charge  d'affaires  intervened. 

Special  attention  may  here  be  directed  to  a  circular,  a  translation 
of  which  is  annexed  as  Exhibit  C,  which  was  issued  by  the  A 
ciation  of  French  Holders  February  u,  1903.  It  appears  that  at  the 
request  of  that  association  the  French  Minister  of  Foreign  Affairs, 
recognizing  and  supporting  the  French-Belgian  contract  of  1901, 
authorized  an  official  of  the  Ministry  of  Foreign  Affairs.  M.  Maurice 
Charpentier,  to  accept  the  post  of  delegate  under  that  contract  for 
the  French  bondholders,  lb-  is  --till  in  Santo  Domingo  acting  as  such 
delegate. 

In  his  No.  626,  of  October  29,   ^03,  Mr.  Powell  reported  that  Mr. 

Renoz,  the    Belgian  charge  d'affaires,  had    called    upon  him  in  <>■ 

to  learn  whether  they  could  not   agree  upon  some  plan   that  would 

insure  the   payment  of   foreign  creditors,      Mr.    Renoz  represented 

that  tin-  payments  due  to  Belgian  bondholders  under  tin-  1  ontract  of 

1901   were  in  arrears  to   the  amount   of    more  than  5500,000,  and   that 

while  Belgium  could  not   physically  enforce  payment,  she  might,  if 

had   the  moral   support  ol   the   United   Si  obtain   what   was 

He  therel  ditor  nations  should   pro- 

i  h<    I  tominii        l  I  Ice  <  hi  the  cusb  im- 

nd  administer  the  1 1  is  plan  was  that 

should   tx-  done  by  n  »nal  commission,   on 

whi<  ..oid  Belgium  should  each  be  repre- 

When   Mi    Powell  inquired  .is  to  how  the 

add  be  conducted,  Mr.  Renoz  replied  that 

the  was,  but    t hat  it    might  !>>■  1  e- 

quit  ■  teadof  to  1  he  I  h  >mini<  an 

'  .  Ir.    P  ed  t he  1  >pini< m   1  hat   such  an  ar- 

:i<  <•    it    WOUld    not     prevent 

ilation  ■  He  customs  set  vi<  e  w<  >uld 

id  that  in  ire  effective  set  \i<  <•  1  he 


8 

chief  officer  at  each  port  would  have  to  be  appointed  by  the  com- 
mission, and  should  be  a  foreigner.  Mr.  Renoz  replied  that  the 
ilci.iils  could  be  easily  arranged  if  the  United  Si. tics  would  assent  to 
the  plan.  In  concluding  their  conference,  cadi  minister  staled  that 
he  would  brine;-  the  matter  to  the  attention  of  his  Government. 

It  is.  however,  to  be  observed  that  the  possibilities  of  early  com- 
plications in  the  Dominican  Republic  are  l>v  no  means  confined  to  the 
interests  of  the  bondholders.  The  conditions  of  disorder  that  have 
prevailed  during  the  past  three  yens  have  given  rise  t< i  very  extensive 
claims  on  the  part  ol'  citizens  and  subjects  of  various  foreign  pow 
Most  of  these  claims  were  liquidated  in  June,  [902,  being  then  funded 
under  two  contracts,  by  which  the  creditors,  as  a  special  security 
for  the  payment  of  their  demands,  were  empowered  directly  to  col- 
lect 10  per  cent  of  the  revenues.  The  foreign  claims  thus  funded 
were  as  follows  : 

Italian  citizens $\ ,  (a  3,  023.  61 

man  citizens 485,  655.  81 

American  citizens 396,  944.  81 

Porto  Rican  citizens 7S,  845.  23 

Dutch  citizens 13,  590.  60 

English  citizens 23,  131.  85 

In  addition  to  the  foregoing  claims  there  is  also  a  claim  for  $196,- 
534,  in  which  a  German  and  a  Spanish  interest  are  blended,  and 
which  is  guaranteed  and  means  of  payment  provided  by  an  interna- 
tional agreement  between  the  German  and  Spanish  consuls  on  the 
one  part  and  the  Dominican  Government  on  the  other. 

There  are,  besides,  other  liquidated  and  unliquidated  claims, 
American  and  foreign,  amounting  to  considerable  sums.  Some  of 
these  have  already  been  liquidated,  and  among  them  claims  of  Italian 
subjects  amounting  to  $379,312.78. 

PRESENT    CONDITIONS. 

Among  the  liquidated  and  unliquidated  debts,  there  are  loans 
contracted  by  Governments  and  loans  contracted  by  revolutionists, 
the  latter  class  having  been  legitimized  by  the  borrowers  when  they 
succeeded  and  became  the  Government  themselves.  The  loans  to 
ernments  have  often  been  obtained  by  them  for  the  purpose  of 
resisting  or  buying  off  revolutionary  attempts.  A  certain  portion, 
perhaps  much  less  than  half,  has  been  incurred  for  entirely  proper 
purposes.  It  should  also  be  observed  that  a  very  large  percentage, 
both  of  the  liquidated  and  the  unliquidated  floating  debts,  is  made  up 
of  accumulated  interest,  sometimes  running  as  high  as  1^  or  even 
2  per  cent  a  month,  compounded  monthly,  amounting,  with  com- 
missions and  bonuses,  in  many  cases  to  as  much  as  the  cash  actually 
furnish' 


As  an  illustration  of  present  financial  conditions  and  manage- 
ment, the  fact  may  be  mentioned  that  from  May  i.  1900,  to  May  31, 
1903,  there  was  actually  appropriated  in  the  budget,  calculated  upon 
the  basis  of  income  and  of  peace:  For  agriculture,  $15,240,  all  of 
which  went  for  salaries;  for  public  instruction.  $101,749;  fur  public 
works,  $69.  793:  for  war  purposes.  $1,183,202.  No  appropriations  were 
provided  for  the  contingency  of  actual  warfare  or  revolution.  The 
additional  sums  expended  to  put  down  revolutions  are  conjectural. 
as  no  accounts  have  been  published  except  for  the  period  from  May 
1,  1902,  to  March  31,  1903.  The  accounts  for  this  period  show  an 
income  of  $1,700,576  and  an  expenditure  for  "war  purposes"  of 
$241,206,  for  "two  revolutions"  of  $138, 113,  and  for  "extraordinary 
expenses,"  the  nature  of  which  is  not  specified,  of  $27 1 .507.  Assum- 
ing the  $24 1 .  206  for  •'  war  purposes  "  to  be  sums  appropriated  by  the 
budget,  the  "  revolutionary  "  and  •'extraordinary"  expenditures,  not 
provided  for  in  the  budget,  amounted  to  5400,620,  which  doubtless 
was  met  by  diversion  of  the  moneys  appropriated  to  the  foreign  in- 
debtedness, the  payment  of  which  fell  into  neglect. 

Among  recent  foreign  demands,  there  are  also  accumulated 
French  claims  for  repeated  injuries,  during  the  several  revolutions  in 
the  Dominican  Republic  since  1S99,  to  the  telegraph  lines  owned 
by  the  French  Cable  Company.  Notice  of  these  demands  was  given 
to  the  United  Suites  by  the  French  ambassador  in  his  note-  of  June  S. 

1903. 

All  the  claims  here  referred  to.  both  liquidated  and  unliquidated, 
have  arisen  sini  creation  of    the  bonded   indebtedness. 

It  should  lx-  pointed  out  that  practically  all  the  great  industrial 
and  commercial  interests  of  the  country,  as  distinct  from  elementary 
agriculture,  are  owned  or  controlled  by  foreigners.  The  sugar 
•wned  l>v  Americans  and  Italians.  Extensive  banana 
plantations  are  owned  by  Americans.  Of  the  two  completed  rail- 
Is.  one  is  owned  by  British  subje<  ts.  while  the  other  is  operated 
under  a   long  leas.-   i.\    an   A  in  company,  an  ally  of  the  San 

1    .nip. in  \  Vel  .in'  'i  her  rail- 

instruction  l'\  an  American  company.     The  exporta- 
ineil v  in   1  he  ha nds        A  1  s.     The  oil   fields 

developed  bj  an  American  company,      The  wharl 

pal    pori  S  .ire  owned    bj 

Ami  ommercial   houses  ai  e  ow  ned 

or  1  !  Italian 

1    1  \  1  • 

Santo  D  I  he  English  f<  >rm  San  I  >■  <■ 

mm-'.  plied    to  th.it    pari  ol   the  am  ient  island  of 

II     p   niola  which   is  embraced  within  the  Dominican  Republic,  the 


IO 

rest  of  the  island  being  occupied  l>v  the  Republic  ol  llaiii.  In  [82a 
the  people  of  the  eastern,  or  Spanish,  portion  of  the  island  were 
subdued  by  the  people  of  the  western,  or  French,  portion,  called 
the  Haitians;  but  in  [844  the  former  reasserted  their  independence 
and  set  up  a  Government  under  the  title  of  the  Dominican  Republic. 

In  December,  [844,  the  Dominican  Republic,  which  was  then 
still  at  war  with  Haiti,  sent  an  agent — Sefior  Caminero — to  the 
United  States  to  solicit  the  recognition  of  its  independence.  In 
the  following  year  Mr.  John  Hogan,  of  New  York,  was  sent  out 
as  .1  special  commissioner  to  make  an  investigation  and  to  report 
on  the  question  whether  the  Dominican  Government  should  be 
recognized. 

Mr.  Hogan's  report  was  on  the  whole  favorable  to  recognition, 
but  recognition  was  not  granted;  and  subsequently,  in  1849  ancl 
1  850,  the  Governments  of  the  United  States  and  Great  Britain  jointly 
intervened  for  the  purpose  of  bringing  an  end  to  the  war  between 
the  Haitians  and  the  Dominicans,  on  the  basis  of  the  latter's  inde- 
pendence. 

The  independence  of  the  Dominican  Republic  was  established, 
but  the  United  States  did  not  enter  into  formal  diplomatic  relations 
with  the  Government  until  1862. 

Meanwhile,  the  United  States  had  in  various  ways  manifested  a 
special  interest  in  the  Dominican  Republic.  In  1854  Captain  (after- 
ward General)  George  B.  McClellan  wras  sent  out  by  the  Secretary 
of  War  to  examine  the  harbors  in  the  country,  with  a  view  to  the 
establishment  of  a  coaling  station.  He  reported  that  the  best  har- 
bors in  the  Republic  were  those  of  Samana  Bay,  Manzanilla,  and 
Ocoa.  He  strongly  recommended  the  acquisition  of  Samana  Bay, 
together  with  the  whole  peninsula  and  the  adjacent  keys,  if  possible. 
The  bay  of  Samana  is,  as  Captain  McClellan  reported,  almost  directly 
in  the  route  of  vessels  using  the  Mona  passage,  the  most  impor- 
tant eastern  avenue  to  the  Caribbean  Sea,  whose  importance  will  be 
immensely  enhanced  by  the  opening  of  a  canal  between  the  Atlantic 
and  the  P      i  tic  at  Panama. 

A  treaty  between  the  United  States  and  the  Dominican  Republic 
was  signed  at  Santo  Domingo  City  on  October  5,  1854,  but  it  was 
subsequently  amended  by  the  Dominican  Congress  and  the  ratifica- 
tions were  not  exchanged.  During  the  negotiations  the  Dominican 
plenipotentiaries  agreed  to  insert  an  article  lor  the  purpose  of  grant- 
ing a  coaling    station  to  the  United    States  in  Samana  Bay,  but  they 

re  afterwards  induced  to  omit  it  because  of  the  opposition  of  the 
representatives  of  certain  European  powers.  On  October  5,  1855,  in- 
structions were  given  by  Mr.  Marcy,  Secretary  of  State,  to  a  special 

at  of  the  United  States  to  negotiate-  a  new  treaty,  and  if  possible 


1 1 

to  induce  the  Dominican  Government  to  agree  to  such  an  article  as 
its  representatives  had  withdrawn  in  the  previous  negotiations. 

In  1861  the  Government  of  Spain,  taking  advantage  of  the  situa- 
tion in  the  United  States,  reannexed  Santo  Domingo.  The  United 
States  strongly  protested  against  this  act,  but  under  the  circum- 
stances the  protest  was  disregarded.  The  Dominicans,  however, 
were  opposed  to  the  action  of  Spain  and  resisted  it,  and  in  their 
resistance  were  aided  by  Haiti.  In  April,  [865,  the  Spanish  Cortez 
passed  a  law  for  the  abandonment  of  Santo  Domingo  and  this  law 
was  signed  by  the  Queen  of  Spain  on  the  30th  of  that  month. 

The  events  that  had  taken  place  in  Santo  Domingo,  together 
with  the  experience  during  the  civil  war  of  the  serious  disadvantages 
resulting  from  a  lack  of  naval  facilities,  led  Mr.  Seward  in  [866  to 
renew  the  effort  to  establish, a  naval  station  in  Santo  Domingo.  To 
that  end  he  instructed  Mr.  F.  W.  Seward,  Assistant  Secretary  of 
State,  on  December  17,  1866,  to  proceed  to  that  country  as  a  special 
envoy  with  full  power  to  conclude  a  convention  with  the  Dominican 
Republic  for  the  cession  or  lease  of  the  requisite  territory  to  the 
United  States.  It  was  expected  that  the  cession,  if  made,  would  be 
in  full  sovereignty;  but  if  this  could  not  be  effected,  it  was  stated 
that  a  lease  for  a  term  of  thirty  years  would  be  accepted.  In  his 
instructions  of  December  17,    [866,   Mr.   Seward  said: 

During  the  Administration  of  General    Pierce  an  offer   was  ma  itain   a 

lease  of  land  on  the   Hay  of   Samana  as  a  coal   station    1 1 . 1    passenger  ami   naval 

steamers,  and  an  army  engineer  was  sent  thither  in  a  vessel  •  't  war  for  tin-  pin  pose 

ting  a  sit<-.     Unfortunately,  tin-  survey  was  prematurely  made  before  any 

arrangement    had    been    concluded    with    that   Government   on    tin-   subject.     The 

•  the  United  States  having  become  known  to  tin-  representatives  <>!  some 

tates  in  that  quarter,  they  had  influeni  e  enough  to  thwart  our  plans.     The 

late  intervention  ol  Spain  in  tin-  Dominii  an  Republic  had  its  motive  in  a  jealousy 

tation  in  Samana.     It  could   not  !"■  expected  tint  the 
undei  will   succeed,  unless  caution,  and 

Admit. o  Portei 
•  11. 

Mi     l     \\     -       ird,  when  he  arrived  in  Santo   Domingo,  enti 
elations   with   the    Dominii  uthorities  and  dis«  ussol   with 

them  the  ;  itions  which  he  was  authorized  i"  make,  but  no  con- 

ched.      Mi    Sew  >on  retu rned  to  the  United 

and   his  |"  'V.  ed  to  M  1    Sunt  h,  c<  immei  1  ial 

1  to  Dom i         I    ty . 

[n   1868  P  oid  his  .  . mfidenl  ial  mil  Mr,   Felix 

eniially  p  M  1    Smil h  in  substance  1  hat, 

in  view  ol   the  cond  >l  things  then         ting  in  Santo   Domin 

the   I'  United   States  should    immediately  publish  a 

d.-i  i  1  pla<  ing  the  Dominii  an  Republic  under  the  protei  tion  ol 


I  2 

tlic  United  States,  and  should  send  vessels  of  war  to  take  possession 
Samana  and  Manzanilla  bays  and  of  any  other  points  that  mili- 
tary strategy  might  indicate.  Mr,  Seward  replied  thai  the  Presi- 
dent did  not  consider  himself  empowered  to  take  such  a  step,  but 
that  the  subject  was  a  very  important  one  and  would  be  submitted 
to  Congress  at  the  next  session. 

EARLY     l  w  k    "I     ANNEXATION. 

The  subject  was  presented  to  Congress  in  the  President's  annual 
message  of  December  9,  1868,  in  the  following  terms: 

Comprehensive  national  policy  would  seem  to  sanction  the  acquisition  and  in- 
corporation into  "in  Federal  Union  of  the  several  adjacent  continental  and  insular 
communities  as  speedily  as  it  can  be  clone  peacefully,  lawfully,  and  without  any 
violation  of  national  justice,  faith,  or  honor.  Foreign  possession  or  control  of 
these  communities  has  hitherto  hindered  the  growth  and  impaired  the  influence 
of  the  United  States.  Chronic  revolution  and  anarchy  there  would  be  equally  in- 
jurious. *  It  can  not  be  long  before  it  will  become  necessary  for  this  Gov- 
ernment to  lend  some  effective  aid  to  the  solution  of  the  political  and  social  problems 
which  are  continually  kept  before  the  world  by  the  two  Republics  of  the  island  of 
Santo  Domingo,  and  which  are  now  disclosing  themselves  more  distinctly  than 
heretofore  in  the  island  of  Cuba.  The  subject  is  commended  to  your  considera- 
tion with  all  the  more  earnestness  because  I  am  satisfied  that  the  time  has  arrived 
when  even  so  direct  a  proceeding  as  a  proposition  for  an  annexation  of  the  two 
Republics  of  the  island  of  Santo  Domingo  would  not  only  receive  the  consent  of 
the  people  interested,  but  would  also  give  satisfaction  to  all  other  foreign  nations. 

In  a  letter  to  Mr.  Banks,  of  the  House  of  Representatives,  of 
January  29,  [869,  Mr.  Seward  said  that  the  opinion  expressed  by 
the  President  that  the  Republics  of  Haiti  and  Santo  Domingo  were 
not  unprepared  for  a  direct  proposition  of  annexation  was  inferred 
from  the  nature  of  the  propositions  which  had  been  received  from 
the  Dominican  Republic  before  the  meeting  of  Congress,  but  that 
within  the  week  then  current  a  trustworthy  and  confidential  proposal 
had  come  from  the  Dominican  Republic  for  immediate  annexation; 
that  this  proposal  waived  all  preliminary  stipulations  and  addressed 
itself  simply  to  the  discretion  and  friendship  of  the  United  States; 
and  that  an  agent  from  the  Dominican  Republic  awaited  the  action 
of  the  Gi  »vernment. 

This  correspondence  was  followed  by  the  introduction  by  Mr. 
Orth  in  the  House  of  Representatives  of  a  joint  resolution  for  the 
admission  of  the  Dominican  Republic,  on  the  application  of  its  people 
and  Government,  into  the  Union  as  a  Territory  of  the  United  States, 
with  a  view  to  ultimate  statehood.  The  resolution  was  not  accom- 
panied by  a  report,  but  Mr.  Orth  said  that  it  "had  the  approbation 
of  a  large  majority  of  the  Committee  on  Foreign  Affairs."  1'pon 
his  insisting  upon  the  previous  question,  the  resolution  was  laid  on 
the  table-  by  a  vote  of  1  10  to  63. 


J3 

In  July,  1S69,  General  Babcock  was  sent  by  President  Grant  to 
Santo  Domingo  to  obtain  information.  General  Babcock,  who 
bore  instructions  to  that  effect  from  Mr.  Fish,  sailed  from  New- 
York  July  17,  1869.  On  the  4th  of  September  he  signed  with  Mr. 
Gautier,  the  Dominican  Secretary  of  State,  a  protocol  containing 
certain  articles  which  were  to  serve  as  the  basis  for  a  definite  treaty 
of  annexation.  General  Babcock  then  returned  to  the  United 
States.  On  November  16,  1869,  he  was  instructed  to  return  to  Santo 
Domingo  with  a  draft  of  a  treaty  of  annexation  and  also  of  a  con- 
vention for  the  lease  of  Saniana  Bay.  The  treaty  and  convention 
were  to  be  concluded  by  Mr.  Perry,  United  States  commercial  agent 
at  Santo  Domingo  City,  who  was  to  act  under  General  Babcock's 
advice.  Both  the  treaty  and  the  convention  were  signed  November 
29,  1869.  They  were  communicated  to  the  Senate  January  10.  1X70. 
The  treaty  of  annexation,  when  brought  to  a  vote,  failed  to  receive 
the  requisite  two-thirds  majority.      The  vote  sto  to   28.      The 

convention  also  failed. 

In  Ids  annual  message  of  December  5.  1870,  President  Grant, 
referring  to  the  failure  of  the  treaty,  said  that  he  was  thoroughly 
convinced  at  the  time  that  the  Lest  interests  of  the  country,  com- 
mercially and  materially,  demanded  its  ratification,  and  that  subse- 
quent reflection  had  1  onfirmed   him  in  this  view. 

I  'nder  a  joint  resolution  of  Congress  approved  January  1  2,  1871, 
President  Grant  appointe  immission   to  proceed    to  Santo  Do- 

mingo   and   report  upon  its    political    and    social  condition  and    as    to 

the  disposition  of  tin-  people  on  the  question  ol  annexation.  The 
nbers  of  the  commission  were  Benjamin  F.  Wade,  ol  Ohio; 
Andrew  I  >.  White,  of  New  York ;  and  Samuel  (i.  Howe,  of  Massa- 
chusetts. The  1  ommission  visited  the  island,  examine. 1  its  resources, 
and  sustained  l . y  its  report  the  policy  recommended  by  President 
Granl  In  communicating  the  report  to  Congress  President  Grant, 
referring  to  certain  personal  features  ol  the  opposition  that  had  led 
to  the  failure  of  the  treaty,  said  ; 

-|1,.                          n  bj  ihi  ited  by  tl><-  President  only 

in,ll,  .,-•                                   nion  an                                   tments  ol  the  <  ro\  ei  nment, 

with. nit  touching  the  chara  nding  l                                   But  when 

nli  ih-  •  nlj  made  ol  1  orruption 

,,,,   ,|lf.  part  of  the  P  ed  bj  him,  the  1  .is.-  is  different. 

1  demam                   ation,      I  his  has 

)„.,.,,  ■  rew  iili  tram  m  it  ted,  and 

u.|,j,  |,  fun,  ■!,  ..;   id.  ise  w  ho  repn  1  ented 

,1,,.  1  is  fin ii  hed,  and  with  ii 


1  I 

These  remarks  *>i  the  President  were  understood  to  refer  to  a 
speech  made  by  Mr.  Sumner  when  the  resolution  for  the  appoint- 
ment  of  the  commission  was  pending  before  the  Senate.  President 
Grant  did  not  further  urge  the  annexation  of  the  Dominican  Repub- 
lic upon  Congress;  but  in  his  List  annual  message  of  December  5, 
[876,  he  reiterated  liis  adherence  to  the  views  on  which  he  had 
originally  acted  and  which  he  had  presented  to  Congress  in  1870 
a  ml   1  S  7  1 . 

It  is  understood  that  certain  negotiations  were  conducted  through 
Mr.  Durham,  American  charge  d'affaires,  in  [892,  lor  the  acquisition 
of  Samana  Bay  by  the  United  States,  but  there  is  little  record  of 
them  in  the  1  depart  ment. 

REVOL1    1  IONS. 

It  is  needless  to  enter  into  the  details  of  the  revolutions  that  have 
taken  place  in  the  Dominican  Republic  since  the  establishment  of 
its  independence.  For  the  understanding  of  the  present  situation 
it  suffices  to  go  back  to  1898.  In  May  of  that  year  an  expedition 
left  the  United  States  on  the  steamer  Fanita.  ostensibly  to  aid  the 
Cuban  insurgents.  As  the  United  States  was  then  at  war  with 
Spain,  the  expedition  is  understood  to  have  had  the  support  and 
active  aid  of  the  United  States  Government  for  the  purpose  named. 
The  expedition,  however,  did  not  go  to  Cuba.  Its  nominal  com- 
mander, "Captain  Rodriguez,"  turned  out  to  be  Senor  J.  I.  Jiminez, 
a  Dominican,  and  its  destination  the  port  of  Monte  Christi,  in  the 
Dominican  Republic.  With  Jiminez  was  associated  Gen.  Augustin 
M<  Males.  They  landed  at  Monte  Christi,  where  mostof  them  were  shot. 
Jiminez  himself  escaped  and  fled.  Jiminez  subsequently  renewed 
his  revolutionary  schemes;  and  on  July  26,  1899,  President  Heureaux 
was  assassinated.  A  few  days  later  Senor  Ramon  Caceres,  who  had 
shot  him,  and  Gen.  Horacio  Vasquez,  acting  with  certain  other  per- 
sons, started  a  revolution.  The  revolution  spread  in  the  interior  of 
the  island,  and  on  August  29,  1899,  General  Vasquez  was  proclaimed 
by  a  committee  of  citizens  as  President  of  a  Provisional  Government 
at  Santiago.  On  the  assassination  of  Heureaux,  Vice-President 
Figuereo  had  assumed  the  Presidency  of  the  regular  Government  at 
Santo  Domingo  City;  but  on  August  30,  1899,  he  resigned,  and  on 
the  following  day  the  members  of  the  Cabinet  abandoned  their  posi- 
tions. The  forces  of  General  Vasquez  entered  the  capital  on  the  5th 
of  September,  and  he  then  became  the  head  of  a  Provisional  Gov- 
ernment, which  was  afterwards  recognized  by  foreign  powers. 

The  Government  of  General  Vasquez  continued  till  November  20, 
1899,  when  Sefior  J.  I.  Jiminez  succeeded  him  as  "Constitutional," 
or  Elective,  President,  with  General  Vasquez  as  Vice-President. 
Sefior  Caceres  was  appointed  governor  of  Santiago. 


The  Government  of  Jiminez    lasted  till  May  2,   1902,  when,  after' 
a  severe  struggle,  it  was   overthrown   as   the   result  of  a  revolution 
headed  by  General  Vasquez,  Vice-President,  who  then  became  Presi- 
dent of  another  Provisional  Government. 

In  October,  1902,  local  outbreaks  began  to  take  place,  and  they 
continued  till  March,  1903,  when  an  independent  revolutionary  move- 
ment was  started  at  the  capital  under  the  lead  of  Gen.  Alejandro 
Wos  y  Gil,  who,  on  April  18,  1903,  himself  became  the  President  of 
a  new  Provisional  Government.  Before  this  revolution  took  place 
General  Vasquez  had  called  an  election,  but  the  revolution  pre- 
vented it  from  being  held.  General  Wos  y  Gil,  after  Ids  installation, 
also  called  an  election,  and  in  due  course  he  was  chosen  "Constitu- 
tional" President  to  succeed  himself  as  Provisional  President. 

Among  the  causes  of  the  revolution  against  General  Vasquez,  as 
narrated  by  Mr.  Powell,  American  charge  d'affaires,  in  a  dispatch 
of  January  14.  1003,  was  the  refusal  of  General  Vasquez,  who  seemed 
desirous  of  placing  the  country  in  a  better  condition  and  of  prevent- 
ing a  wholesale  pilfering  of  public  funds,  to  continue  the  monthly 
stipends  of  a  number  of  men  termed  "chiefs''  in  their  districts,  who 
filled  no  public  office  nor  performed  any  public  work,  but  who.  be- 
sides keeping  the  President  informed  of  any  discontent  prevailing 
in  their  sections,  were  expected,  in  case  of  an  insurrection,  to  mar- 
shal their  friends  and  tight  on  the  President's  side.  This  practice, 
according  to  Mr.  Powell,  originated  with  General  Heureaux,  and 
reached  during  his  Administration  an  abnormal  development,  so  that 
there  were  several  hundred  such  men  in  his  pay.      The  pi  had 

been    largely   continued    by  Jiminez.      General   Vasquez    sought   to 
restrict  if   not  to  abolish  it. 

LA  rER    I  \  1  N  1  S, 

On  August  31,  1903.  the  Secretary  ol  Foreign  Relations  of  the 
G  ernment  of  General  Wos  y  Gil  submitted  to  the  Dominican 
Congress  a  projei  t  for  the  neutralization  of  the  territorial  waters  of 
the   Republh    and    the  establishment  of  free   ports  al    Samana  and 

Manzanilla.       The  sul.stain  e  of    this  projei  I.    the   :  ied  design  of 

which  was   to   prevent    the  acquisition  ol    special   privileges  by  any 

nation.   7,  a 

, .1  without  ition  <>f  th<-  waters,   ba 

iblii  .  w  mIi  tin-  •  11  "I  tin   right  to 

defend  1 1  1  with  th<  the  Republh    In  1  ase  ol   f<  u 

all. i'  k  1  IIS. 

nil]. 1  to  I"-,  in  iiu-ii  outei  i'. 11  is. 
-,  to  ih.  il'  '.iik  nations,  tli<-  <  \o\  ei  nmenl  r< 

iriK  t"  itself  the  inn<  hm»  nl  1  lations. 

1  that  the  Domic  public  would  erect  wharves,  stationary  01 

ind  other  structures  necessary  and  adequate 


for  the  anchorage,  repair,  docking,  and  traffic  ol  vessels   in   the  waters  of    the  two 
above  mentioned,  and   would   organize  administrative  services   therein    for 
moderate  compensation. 

4.  To  authorize   the   Executive    Power    to  conduct    negotiations  and    financial 

itions  necessary  to  obtain  by  .1  loan  the  funds  for  such  purposes. 
;.   A--  a  security  for  the  payment  ol  this  loan   to  apply,  among  othei  things,  ilu- 
able  proceeds  *  >  t  the  contracts  ol   peaceful  use  and  enjoyment  of  the  resorts  in 
question,  .is  well  .is  the  proceeds  derived  from  concessions  foi  locations  upon  their 
shores  for  commercial  .mil  industrial  purposes. 

In  consequence  ol  the  protest  of  Mr.  Powell,  the  American  1  harg6 
d'affaires  at  Santo  Domingo  City,  this  project  was  withdrawn  from 
the  Congress. 

On  October  26,  1903,  Mr.  Powell  reported  that  the  governor  of 
Puerto  Plata,  Sefior  Carlos  F.  Morales,  had  pronounced  against  the 
Government  of  General  Wos  y  Gil,  and  that  that  district  was  again 
in  insurrection.  The  movement,  said  Mr.  Powell,  appeared  to  be  in 
favor  ol  Jiminez,  the  late  President,  and  if  it  should  succeed  would 
not  bring  peace  to  the  country,  as  the  Vasquez  party  would  not  ac- 
cept as  President  either  Jiminez  or  any  person  named  by  him,  nor 
would  Jiminez  accept  either  Vasquez  or  a  member  of  his  party. 
There  were  then  three  parties — the  Wos  y  Gil,  or  Government,  party, 
the  Jiminez  part}-,  and  the  Vasquez  party.  General  Deschamps,  the 
Vice-President,  on  learning  of  the  revolutionary  movement,  had  left 
Santiago  for  Puerto  Plata. 

On  October  30,  1903,  Mr.  Powell  reported  that  the  Government, 
immediately  after  the  breaking  out  of  the  insurrection  at  Puerto 
Plata,  sent  both  of  its  naval  vessels  to  that  place  with  troops,  under 
the  command  of  the  Minister  of  War.  On  his  arrival  the  Minister 
of  War  demanded  the  surrender  of  the  place  on  pain  of  bombard- 
ment. He  remained  there  two  days,  and  then  left  for  Samana  Bay 
without  having  executed  his  threat.  The  only  result  of  his  visit 
that  he  prevented  the  Clyde  steamer  Cherokee,  as  well  as  a  Cuban 
steamer,  from  entering  either  Puerto  Plata  or  Samana,  a  shot  hav- 
ing been  fired  across  the  bow  of  each  vessel  as  a  warning  not  to 
enter.  Barricades  were  then  being  thrown  up  at  the  entrances  of 
-     1 1<>  Domingo  City,  where  an  attack  was  expected. 

Writing  on  November  4,  1903,  Mr.  Powell  reported  that  the  posi- 
tion of  the  Government  of  Wos  y  Gil  was  growing  weaker,  but  that 
the  state  of  affairs  would  not  be  improved  if  the  insurgents  should 
win,  since  there  would  within  four  months  be  another  revolution, 
for  the  same  reason  that  had  brought  the  existing  one  about — 
namely,  the  desire  to  obtain  control  of  the  customs  revenues. 

On  November  6,  1903,  Mr.  Powell  reported  that  Macoris,  where 
there  were  large  American  interests,  had  been  bombarded  by  a  Do- 
minican vessel  of  war. 


17 

On  the  7 th  of  November  the  insurgents  reached  Santo  Domingo 
City  and  began  an  attack  by  throwing  shells  into  it. 

On  the  nth  of  November  Mr.  Powell  reported  that  theie  were 
then  two  German  men-of-war  at  Santo  Domingo  City — the  Panther 
and  the  Gazelle — and  that  an  Italian  and  a  French  vessel  were  ex- 
pected immediately. 

On  the  25th  of  November,  after  repeated  attacks,  Santo  Doming 
Citv  was  surrendered  to  the  revolutionists  under  the  lead  of  Morales. 
The  guards  placed  by  the  foreign  naval  forces  around  the  legations 
and  consulates  of  their  governments  were  withdrawn.  It  was  agreed 
that  an  election  for  President  should  be  held;  but  Mr.  Powell  ex- 
pressed the  opinion  that  if  limine/  should  be  elected  another  r< 
lution  would  break  out  within  three  months  after  his  taking  the 
oath  of  office,  and  that  the  same  thing  would  happen  if  a  strong  par- 
tisan of  General  Yasquez  should  be  elected.  If  a  new  man  should 
be  chosen  who  would  command  the  support  of  all  tactions  lie  might 
be  able  to  maintain  peace  if  he  could  improve  the  financial  situation  ; 
but  if  he  could  not  a  revolution  would  again  occur.  The  pit-sent 
revolution,  said  Mr.  Powell,  had  cost  the  country  nearly  >;oo,ooo, 
and  the  new  Government  came  in  with  an  empty  treasury  and  with 
all  the  resources  of  the  country  mortgaged  and  with  no  means  of 
obtaining  funds.  '"As  it  stands  to-day,"  he  said,  "the  country  is 
virtually  bankrupt,  and  this  condition,  .is  1  have  stated  in  .1  former 
communication  to  the  Department,  implies  danger  to  our  Govern- 
ment, as  foreign  creditors  will  demand  payment  of  their  claims, 
which  demand  will  be  enforced  by  the  guns  of  foreign  naval  vessels. 
At  the  same  time  our  citizens  will  make  a  like  demand.  This  is  the 
grave  danger  which  confronts  us,  and  it  will  demand  the  wisest 
statesmanship  to  avert  it."' 

in    DISTl 

On  December^  [903,  Mr.  Powell  reported  that  the  political  situ- 
ation was  still  disturbed.  The  Provisional  Governmenl  oi  Morales 
was  in  lull  control,  but  there  were  signs  ol  unrest.  The  adher- 
ents of  fiminez  desired  to  elect  him  i  President,  while  the  adherents 
0f  General  Vasquez  seemed  to  favor  Genen  I  Morales,  although  he 
had  previously  been  .1  revolutionary  adherent  ol  Jiminez.  Since 
the  advent  of  the  new  G  ernment,  disturbances  had  occurred  at 
Mont(  l  iristi,  Samana,  La  Vega,  Azua,  and  Borahona,  but  had 
Deen  SUpp  In  .ill  tho  there  were  many  partisans  of 

[iminez      Tl     G     ernment  had  ■   I  a  decree  declaring   that   all 

gUai  an  nd  that  1  ustoms  revenues  mu        II   be 

paid   in   ,      h.     The  m<  nts  had   0  and   had    not  ified    1  he 

I  ,  .,,  1  hai  11  th.  enfon  ed  they  would  nol  im 

D 


IS 
any  goods.       It   was   probable  that    a   compromise  would    be  readied. 

There  was  much  firing  in  the  streets  at  night,  in  which  many  persons 

had   been  killed,   so  that  it   was  unsafe  to  go  OUl  alter  dark. 

t  >n  the  r2th  of  December,  Mr.  Powell  reported  that  limine/,  was 
at    Monte  Christi  with  a  number  of  his  adherents,  and   that  it  was 

supposed  that  lie  would  within  a  tew  days  organize  another  revolu- 
tion.     Morales  was  preparing  for  the  conflict. 

December  15  Mr.  Powell  wrote  that  a  member  of  the  Govern- 
ment had  inquired  whether  the  United  States  would  lend  or  advance 
it  money.  1 1  e  had  replied  that  the  Government  of  the  United  States 
could  not  advance  any  money  without  the  consent  of  Congress,  and 
that  it  would  therefore  he  useless  to  appeal  to  it. 

The  situation  in  the  Dominican  Republic  in  December,  1903,  is 
vividly  set  forth  in  a  letter  addressed  by  an  American  citizen,  Mr. 
W.  L.  Bass — the  largest  sugar  planter  at  San  Pedro  de  Macoris — to 
Mr.  Powell  on  the  12th  of  that  month,  and  communicated  by  Mr. 
Powell  to  the  Department  of  State  with  his  No.  688,  of  the  14th  of 
December  last.  A  copy  of  this  letter  is  hereto  annexed,  marked 
Exhibit  A. 

December  15,  1903,  Mr.  Powell  reported  that  the  Dominican  Re- 
public was  in  the  throes  of  another  revolution,  which  bade  fair  to 
be  serious.  He  had  previously  expressed  the  opinion  that  another 
revolution  was  impending,  but  he  did  not  think  it  would  occur 
before  March.  The  new  attempt  was  started  by  friends  of  Sefior 
Jiminez,  whom  the  Vasquez  party  joined  Morales  in  resisting.  A 
fight  had  taken  place  at  Santiago,  where  several  of  the  Jiminez 
party  were  killed.  An  attempt  had  been  made  to  kidnap  General 
Morales,  the  President  of  the  Provisional  Government,  but  had 
failed.  Arrests  had  been  made  and  the  situation  was  critical.  Sub- 
sequently General  Rodriguez,  governor  of  Macoris,  "pronounced" 
in  favor  of  Jiminez.  The  followers  of  Morales  at  that  place  then 
took  up  arms  in  order  to  force  the  governor  out.  Mr.  Powell  states 
that  there  are  large  American  investments  in  sugar  estates  at  Ma- 
coris, amounting  to  $500,000.  The  people  about  Macoris  were  said 
to  have  turned  from  Morales  to  Jiminez  because  the  forces  of  the 
former  were  without  ammunition. 

Similar  conditions  of  disorder  have  continued  to  exist  and  ques- 
tions have  continually  arisen  as  to  blockades,  bombardments,  and 
other  militarv  measures. 


J9 

THE    CUSTOM    HOUSES. 

Since   my  return    to    Washington    I    have    received   the    followi 
letter  from  Mr.   Powell: 

\  1  (ON    '  IF    THE    I'M  I  11'    Si  ITES, 

nto  Domingo  City,  D.  A'.,  March  j 
Hon.  Francis  B.  Loomis, 

Assistant  Secretary  of  State,   Washington,  D.  C. 

Sir:  Since  my  informal  interview  with  you  on  the  Mayflower  I  have  hastily 
secured  an  approximate  estimate  of  the  cost  in  carrying  into  execution  the  admin- 
istration of  the  customs  service. 

5TOMS    REVENUE. 

At  the  present  time  no  authentic  figures  can  be  given  as  to  what  the  customs 
revenue  for  the  past  year  has  been,  but  from  figures  at  hand,  during  the  last  year 
of  the  Improvement  Company,  under  the  direction  of  the  Hon.  J.  T.  Abbott,  the 
customs  revenue  was  greater  than  that  of  any  preceding  or  subsequent  period. 
closely  approaching  $2,500,000.  This  was  mainly  due  to  the  judicial  management 
and  retrenchment  instituted  by  Judge  Abbott,  though  at  the  time  there  were  many 
high-priced  officials,  which,  if  the  same  service  should  pass  under  the  control  of  our 
Government,  it  would  not  have. 

1  Aim  1 . 

In  the  first  place  I  would  suggest  a  new  arrangement  of  the  tariff.  The  present 
one  was  made  several  years  ago  and  was  based  on  the  currency  then  in  use.  which 
was  almost  exclusively  paper.  This  tariff  could  easily  bear  a  reduction  o(  20  per 
cent  from  its  present  figures  and  be  made  to  return  a  much  largei  revenue,  and  by 
a  strict   espionage  of   imports   the  1  revenue  within   a    few  years  would  in- 

crease from,  say,  5j, 000,000  to  $4         000  or  $  0.     Under  a   reduced   tariff 

there  would  be  a  larger  consumption  of  goods,  and  as  these  people  almost  exclu- 
sively buy  in  mir  market  we  would  be  the  gainers  and  with  a  strict  customs  law 
governing  all  imports  all  smuggling  that  now  takes  place  would  end. 

In  this  connection  it  would   b  to  remove  all  export  duty,  as  it  would  be 

an   incentive  to  stimulate   tin-   peo]  lively  into  agricultural  pursuits, 

which  would  have  for  a  ng  of  all  revolutions  in   the  interior.     This 

step  would  increase  agricultural  products,  whi<  h  would  find  their  market  in  the 
United    S  aid  which  would  also   mean   it  purchases   in   our  market. 

This  of  the  1 

The  other  it  would    lie   iin:  I    any  di  d  or  ambitious  j 

son  to  start  a  revolution;    would  do  away   with  what  is  known  as  i>  ..i    pett) 

chiefs,  that   the  Government   ha  tantly  to  pay  annually  to  keep  them  quiet. 

Under  this  changed  condition  all   this  will   be  done  away  with  and  within  tw 
three  ifter  there  will  be  a  mai  in  both  Government 

and  people. 

The  cost  that  wou  the  G  nt,  which  would  be  charged  to  the 

,,,li,.,  £57,000,  possibly  a  little  11 

arnl   would   I.-'  di\ 

SantO     I  >>■:■■■::.     I  *  I 



San.  hez : 

Ma<  oris  

Samana  

Monti   '  

, 


20 


The  necessan  force  to  collect  ihis  revenue  would  be: 


I  v--,  i  Iption. 


Plata. 

Director  of  customs 

Assistant   director 

Interpreter 

•  ks 

.-  watchmen 

3    laborers 

Miscellaneous  expenses 


a  Macoris, 


Director 

Assistant   din 

interpreter 

j  clerks 

Watchman 

j    laborers 


Satnana,  Montr  CAristi,  and  .  i 

Director 

3  assistant  directors 

3  interpreters 

3  clerks 

;    watchmen 

3  laborers 


Mi. nth. 


■ 
las 



75 
6o 

I" 


200 
IOO 

75 
6o 
50 
30 

75 
60 
60 
50 

40 

3° 


Yeai 


■ .  ii" 

' .  1 1" 

20 


2,400 

900 

'.ii" 
600 
720 


900 
720 
720 
600 
480 
360 


Two 


$7,200 

2,880 
2,880 

I- 

4,800 
2,400 
1,800 
2,880 
1,200 
1  .ii" 

2,700 
2,160 
2,160 
1,800 

1,440 
1,180 


The  ports  of  Santo  Domingo,  Puerto  Plata,  Sanchez,  and  Macoris  may  be 
termed  giving  ports — that  is,  the  revenue  received  from  them  is  such  as  to  make 
them  the  main  ports  of  the  country — while  the  ports  of  Monte  Christi,  Samana, 
and  Azua  are  known  as  the  receiving  ports — that  is,  the  revenue  received  is  not 
sufficient  to  maintain  the  Government  at  the  place  named,  the  Government  having 
to  make  up  the  deficiency. 

I  would  suggest  in  this  connection  that  the  ports  of  Romana  and  Barahona  be 
closed.  The  first  is  used  for  exporting  crude  petroleum;  the  latter,  woods,  etc. 
But  both  of  the  places  are  used  largely  by  those  who  are  endeavoring  to  evade 
paying  duty. 

During  the  time  the  Improvement  Company  controlled  the  customs  revenue 
their  expenses  for  officers  were  $30,000;  for  other  employees,  about  $45,000;  or,  all 
told,  about  $75,000.      Under  the  above  schedule  there  would  be  a  saving  of  $18,000. 

In  giving  these  figures,  I  am  making  them  so  that  those  who  have  the  greatest 
responsibility  shall  receive  remunerative  salaries,  as  the  cost  of  living  here  is  cal- 
culated on  a  gold  basis  and  is  much  higher  than  in  the  United  States. 


Bl  I". 1  1 . 

I  stated  that  the  budget  during  the  Vasquez  Administration  was  about  $2,000,000; 
I  have  since  learned  that  it  was  $1,600,000.  This  could  be  reduced  $100,000,  as 
the  Government  would  not  have  to  pay  the  jefe.s  that  I  have  already  mentioned; 
would  not  have  to  maintain  a  large  standing  army,  nor  maintain  a  navy,  as,  in 
the  first  place,  in  the  cities  there  could  be  organized  a  strong  police  force;  in  the 
country  districts,  a  rural  guard,  as  in  Cuba,  to  maintain  order  and  surpress  all 
attempts  at  revolution. 

As  there  would  be  a  naval  vessel  stationed  at  the  principal  ports,  they  would 
have  no  use  for  a  navy  of  their  own. 


2  I 

At  each  place  where  there  is  a  custom-house,  for  the  first  one  or  two  years  a 
marine  guard  of  about  ioo  men  or  700  men  in  all  would  have  to  be  stationed. 
This  would  only  have  to  be  maintained  for  a  limited  time  until  the  Government 
got  control  of  the  situation  and  the  people  had  become  acquainted  with  the  change 
of  affairs. 

IMPROVEMEN  1  S. 

Under  this  changed  condition  emigration  would  be  directed  here,  roads  would  be 
built  between  inland  towns,  and  railroads  would  connect  all  parts  of  the  Republic. 
This  of  itself  would  develop  the  rich  resources  of  the  country,  such  as  its  valuable 
timber;  would  open  up  the  mineral  deposits  of  the  country  to  an  extent  that  at  the 
present  time  one  can  not  imagine,  and  restore  the  Republic  to  the  condition  of  its 
early  days  when  it  was  under  the  control  of  Spain. 

Most  of  this  mineral  wealth  remains  undiscovered  as  well  as  undeveloped;  all 
that  is  needed  is  a  stable  government  that  will  invite  and  not  deter  capital. 

The  Republic's  petroleum  wells  are  among  the  finest  in  the  world,  but  they 
have  remained  in  a  state  of  nature  simply  because  no  one  can  feel  safe  to  invest 
capital  in  their  development  in  a  country  where  revolution  is  ripe  at  any  moment. 

PAYMENT   OF    THE    V\  1  [ONA]     Dl 

As  I  have  stated  to  you,  it  is  our  duty  to  protect  these  people  whether  we  like  to 
do  so  or  not;  it  is  pressing  upon  us  daily.  If  we  do  not,  some  country,  when  we 
least  expect  it  or  when  we  are  the  least  prepared  to  resist  it,  will  contest  our  right. 
Foreign  governments  will  not  resist  much  longer  the  pleas  of  their  citizens  for  paj  - 
ment  of  claims  already  accepted  and  which  the  Government  has  agreed  to  pay 
within  a  given  time  but  has  failed  to  keep  those  engagements  on  account  of  the 
disturbed   condition   of  affairs   which    is   y  onstantly   growing    worse.     This 

rnment  will  probably  succeed  in  establishing  itself,  but  it  will  only  be  a 
brief  time  before  another  revolution  will  occur  to  drive  the  Government  from 
power,  the  incentive  being  the  revenue  derived  from  some  custom-house,  or  some 
dissatisfied  jefe,  who  think   that  the  Government  had   not  paid  him  enough 

for  his  support.      This  is  certain    to  occur  unless  we   intervene  on    the    lines   slated 
to  you. 

Then,  again,  v  a  duty  to  our  own  citiz*  :   time  we  have 

sent  two  cases  t"  arbitration.     In  a  few  month  -ion  will  be  rendered,  and  in 

the  present  condition  of  the  country  thi  n  to  commence  a  partial 

payment.      1  aims,  too,  of  tl  tei  from  oth  rnments 

that  antedate  ours.     It  1  duty,  pardon  me  in  stating  it,  to  see  that 

our  ,  ]lw,  11  the  nation. ,i  dignity. 

The  claims  I  more:  To  the  lmpro\  e- 

menl  Com;.  ':"">. 

;  tration,  ;  '■    Puent<  |  to  Mi    Ros, 

1     ■ 

If  the  11:  hi 

- 
ernmeni  within  "",  within  that  time 

,nd  .it  the  s.im.  i  noi 

:  y   mil'  h 

lied   our 
authoi  ''">'• 

whii  h 


22 


I     \    I         <      I      \|\|N. 


Owing  to  the  several  revolutions  there  are  many  claims  to  be  considered,  for 
some  of  which  the  present  Government  must  be  held  responsible;  others,  from  pro- 
ceeding Goverments;  and  others,  again,  thai  are  purely  from  the  pillage  and  destruc- 
tion of  property  during  the  present  suite.  Many  oi  these  claims  are  for  sums  that 
are  entirely  out  of  proportion  with  the  loss  sustained,  All  such  claims  should  be 
thoroughly  examined  before  payment  is  made;  what  is  just  should  be  given  to  the 
claimant,  .mil  ibis  can  only  lie  determined  through  an  impartial  commission. 

The  President  has  assured  me  that  be  is  willing  to  lease  the  bays  of  Samana 
and  Manzanilla  to  our  Government  for  any  length  of  time  that  our  Government 
may  name;  that  the  amount  to  be  paid  should  be  retained  to  pay  the  creditors  of 
the  Republic.     Also,  he  wants  the  United  States  to  administer  its  customs. 

W.  F.  Powell. 

SIGNIFICANT    FACTS. 

In  February,  1904,  General  Morales,  Provisional  President,  sent 
General  Sanchez,  his  Minister  of  Foreign  Affairs,  to  Washington  to 
make  an  offer  to  lease  Samana  Bay  to  the  United  States  and  to  sug- 
gest that  the  Government  of  the  United  States  assume  some  sort  of 
a  protectorate  over  the  Dominican  Republic.  General  Sanchez' 
overtures  met  with  no  encouragement. 

In  this  connection  the  following  cablegram  from  Mr.  Powell, 
dated  March  18,  may  be  of  considerable  interest: 

It  is  reported  that  the  President  of  Haiti  has  sent  commissioners  to  President 
Morales  [to  ask]  him  to  break  off  all  relations  with  the  United  States,  threatening 
in  case  of  refusal  to  give  active  assistance  to  Jiminez.  The  Haitian  President 
desires  Morales  to  meet  him  at  Manzanilla  Bay. 

The  commander  of  the  Hartford,  under  date  of  March  15,  1904, 
wrote  to  the  Navy  Department  as  follows: 

Arrived  at  Monte  Christi  Sunday  and  met  Jiminez,  who  wants  peace  and  sug- 
gests that  the  United  States  intervene  to  secure  it.  To  establish  about  the  same 
relations  as  Cuba  has  with  us  under  the  Piatt  amendment.  Does  not  consider  it 
necessary  to  land  armed  force,  but  a  commissioner  to  convey  our  determination  to 
secure  fair  election. 

Rear-Admiral  W.  C.  Wise,  commander  of  the  Atlantic  Training 
Squadron,  which  has  been  in  Dominican  waters  for  several  weeks, 
referring  to  the  talk  which  he  had  with  Jiminez  at  Monte  Christi, 
says: 

He  assured  me  that  he  was  heartily  in  favor  of  any  action  by  which  peace 
could  be  brought  to  his  country.  He  said  that  the  President  of  Haiti  had  recently 
offered  to  arbitrate,  which  he  accepted,  and  that  the  same  offer  had  been  sent  to 
Morales;  that  there  were  two  factions  bitterly  hostile  to  each  other,  and  the  only 
solution  to  the  matter  was  that  our  Government  should  intervene  and  secure  a 
general  election,  appointing  temporary  governors  of  the  Provinces.  *  *  *  I 
expressed  to  him  the  absolute  necessity  that  our  interests  and  all  foreign  interests 
must  be  protected. 


-3 


Admiral  Wise  further  says: 

Unquestionably  the  time  has  arrived  when  our  Government  should  take  a  very 
determined  action  in  this  matter. 

In  this  connection  I  desire  to  state  that  I  think  the  situation  in 
the  Dominican  Republic  can  be  kept  well  in  hand  and  the  status 
quo  maintained,  with  due  protection  to  American  interests  for  the 
time  being,  if  Commander  Dillingham,  of  the  Detroit,  were  put  in 
charge  of  those  waters  with  perhaps  two  smaller  vessels  to  assist  him. 
He  has  given  great  thought  and  attention  to  Dominican  affairs. 
and  his  action  at  Puerto  Plata  and  other  points  where  he  has  had  to 
deal  with  both  factions  under  arms  has  been  characterized  by  judg- 
ment, justice,  firmness,  and  discretion.  He  seems  to  me  to  be  just 
the  man  for  the  place.  I  think  my  opinion  is  concurred  in  by  others 
who  know  him  and  who  have  had  reason  to  observe  his  work  in 
Dominican  waters. 

I  annex  a  copy  of  a  letter  forwarded  by  Captain  Dillingham,  of 
the  Detroit,  the  original  of  which  was  found  at  the  Government 
House  at  Santo  Domingo  after  limine/  had  escaped  and  the  Morales 
forces  took  possession,  January  20.  It  is  signed  by  on.-  of  limine/' 
chief  leaders: 

nslation.] 

Hi   u»<..i    4.RTERS   "I     I  ill     ClVIl     AM'    MlLITARI    GOVERNMENT, 

Monti  Christi,  January  iS,  IQ04. 
[)■  in  Juan  I.  Jimp- 

Supreme  Chief  of  the  Revolution,  Santia 
Esteemed  Don  b  an:  I  ha  ommunication  ol  the  nth  instant, 

and  have  taken  in  leration  all  the  points  treated  therein. 

I  am  fully  in:  1  all  that  has  happened  in  Puerto  Plata,  and  we  should 

not  allow  ourselves  to  I  1  ipon,  cither  by  Americans  01  anybody  else;  the 

country  should  be  allowed  to  perish  fit 

town  i"  be  •  annonaded,  and  dis- 
tribute your  and  mosl  d  n  along  the  highroads  approaching  the 
town.  This  is  for  us  a  matter  ol  lil  ith,  and  we  must  continue  the  struggle 
with  faith,  and  not  lose  hi 

Make  your  an  n  sui  h  manner  as  will  permit  you  to  wail  the  arrival 

of  ammunition,  which  will  n,  and  thei  quickly  mat- 

ters will  take  anothei  turn. 

\m.-i  ;  lured  Puerto  PlaU         1  should  show  1 

one,  and  ''"'  '  "nMlis-  ■""1 

■ 
10  return. 

Strength)  1  Bnai  P 

1  path,     I  will  ix.M  ti 

11   men,  and  stimulate 

them  to  t  ..In  with  '  &J  u  "ll  them. 

Itl  ,  j  .u  well  know  w  hat 

tely  no  guaranty,  as  lias 

and  it  is 

mui 


-I 

Prepare  your  artiller)  so  as  to  cannonade  the  enemj  should  they  advance  on 
you  Order  the  fort  at  Puerto  Plata  to  cannonade  the  town,  and  see  il  you  can 
send  a  man  to  interrupt  the  cable  so  that  they  can  nol  communicate  with  Turks 
Islands. 

Send  a  force  over  the  Pale  Quemade  road,  and,  in  combination  with  the  fort, 
attack  the  enemy  inside  tin-  town. 

Instruct  Andres  (Navarre)  to  actively  push  the  cannonading  of  Santo  Domingo 
City,  and  tell  him  w  hold  firm,  as  matters  to-day  more  than  ever  need  a  decided 
and  resolute  attitude,  so  that  he  must  push  the  siege  of  the  city  and  try  to  take  it 
as  quickly  as  possible.  What  is  needed  is  to  train  cannon  on  all  points  of  the 
town;  this  terrorizes  the  enemy  and  causes  the  consuls  and  private  families  to 
plead  for  surrender. 

Do  not  lose  hope,  but  make  use  of  your  brains.  Order  your  people  when  the 
enemy  approaches  only  to  fire  volleys  at  point-blank  range.  Tell  them  at  Puerto 
lM.ua  Fort  to  hold  themselves  firm. 

Offer  the  troops  which  attack  Puerto  Plata  the  license  to  pillage,  and  you  will 
see  how  gladly  and  contentedly  they  will  follow  you. 

Do  not  lose  faith  for  a  single  moment,  and  forward. 

Always  your  friend. 

(Signed)  Desiderie  Arias. 

Attention  is  invited  to  the  foregoing  letter  on  account  of  its 
expressions  concerning  Americans,  foreign  consuls,  and  other 
foreigners. 

ANOTHER    LETTER. 

A  belated  letter  from  Consular  Agent  Reed  of  the  United  States 
at  San  Pedro  de  Macoris  throws  a  vivid  light  upon  existing  condi- 
tions in  the  Dominican  Republic.  Under  date  of  February  21,  1904, 
Mr.  Reed  writes : 

<  *n  Friday,  February  19,  about  5  p.  m.,  the  Dominican  gunboat  Presidente,  with 
her  tender,  the  coasting  steamer  Estrella,  anchored  off  this  port,  apparently  carry- 
ing a  good  many  troops.  At  9  p.  m.  the  clerk  of  the  city  council  called  upon  me 
with  a  letter  addressed  to  the  foreign  consular  officers  resident  at  this  place  from 
the  commander  of  the  expedition  on  board  the  Presidente,  Mr.  Romainc — the  Min- 
ister of  the  Interior  of  the  Provisional  Government — in  which  he  acquainted  us 
with  the  fact  that  he  had  demanded  the  surrender  of  this  city  from  the  insurgent 
general  D.  Rodriguez,  and  that  in  case  of  refusal  by  the  latter  to  his  demand  he 
would  give  six  hours'  grace  for  the  removal  of  noncombatants  before  he  commenced 
bombarding  the  town.  He  requested  our  good  offices  with  General  Rodriguez  in 
persuading  him  to  grant  his  demand  to  avoid  any  unnecessary  bloodshed,  etc. 

As  it  was  an  impossibility  to  remove  all  noncombatants  during  six  hours  of 
darkness,  the  consular  officers  of  the  different  nationalities  resident  here  agreed  to 
demand  an  extension  of  time  until  Saturday  noon  of  the  20th  in  order  to  get  the 
people  out  of  the  town,  since  General  Rodriguez  refused  to  comply  with  the  minister's 
request.  I  did  not  fail  to  point  out  to  General  Rodriguez  that  this  was  not  a  forti- 
fied town  and  that  a  bombardment  at  close  range  by  t he  gunboat  Presidente  would 
cause  a  great  deal  of  loss  of  life  and  property,  especially  to  peaceful  foreigners, 
who  comprised  two-thirds  of  the  inhabitants  of  this  place;  but  he  was  deaf  to  all 
argument  and  entreaty  and  the  letter  was  sent  to  the  commander  of  the  expedition, 
who  replied  that  all  the  extension  he  would  grant  was  until  Saturday,  the  20th,  at 
8  a.  m. 


25 

By  7.30  a.  m.  the  bulk  of  the  people  had  left  the  town  for  the  country,  and  the 
idente  and  Estrella  steamed  into  the  harbor,  where  they  anchored  about  [,500 
yards  from  the  wharf,  and  at  S  a.  m.  precisely  opened  fire  upon  the  town  with  bis 
guns  and  rifles.  Though  the  firing  from  big  guns  and  small  arms  was  very  rapid — 
certainly  more  than  five  shots  to  the  minute  during  three  hours — the  damage  was 
small,  since  apparently  all  the  shots  from  the  big  guns  went  high  and  over  the 
town  into  the  country;  and  when  at  11  a.  m.  the  Estrella^  crowded  with  men  and 
having  two  boats  in  tow  also  full  of  men,  started  for  the  custom-house  wharf  for 
an  assault  upon  the  town,  the  commander  of  the  gunboat  had  failed  to  clear  the 
place  of  landing  and  also  to  get  a  range  for  his  guns  to  protect  the  landing  of  his 
troops,  and  the  latter,  when  arriving  off  the  end  of  the  custom-house  wharf,  were 
confronted  by  the  solid  ranks  of  the  insurgents,  who  not  only  prevented  their  land- 
ing, but  slaughtered  the  crowded  men  in  the  boats  like  sheep  in  a  pen.  and.  though 
the  Estrella  handled  her  bow  gun  very  well  and  effectively,  the  nonsupport  of  the 
Presidents ' s  guns  made  the  attempt  to  land  a  failure.  In  less  than  ten  minutes  half 
of  the  assaulting  force  was  killed,  and  the  Estrella  had  to  steam  back  rapidly  to 
save  the  remainder,  not  a  single  soldier  ever  being  able  to  make  a  landing. 

Observing  all  this  very  closely  with  a  strong  marine  glass  from  the  veranda  of 
my  house,  I  could  not  heip  wondering  at  the  stupidity  of  the  man  in  command  of 
the  gunboat  in  not  landing  one  shell  in  front  of  his  men  for  their  protection.  The 
Estrella,  on  her  return  to  the  gunboat,  first  steamed  out  of  the  harbor  to  get  rid  of 
the  dead,  and  on  her  return  to  the  gunboat  took  the  wounded  on  board  and  steamed 
to  Santo  Domingo  City,  the  gunboat  continuing  the  bombardment  until  sundown. 
when  an  armistice  was  arranged  between  the  opposing  [ones  for  three  hours,  os- 
tensibly to  rest  the  men  but  in  reality  to  enable  General  Rodriguez  to  rei  1 live  and 
mount  a  heavy  gun,  for  which  he  had  sent  the  previous  evening,  <  M  course,  it  is 
hard  to  get  at  the  exact  figures  of  the  loss  on  both  sides,  but  al  a  moderate  esti- 
mate the  assaulting  party  must  have  lost  between  thirty  and  forty  men  and  the 
insurgents  from  twenty-five  to  thirty:  among  the  latter  was  the  insurgent  general 
Herrera,  shot  through  the  head. 

The  bombardment  by  the  Prt  n  iente,  an  entirely  useless  one,  lasted  from  11  p.  m., 
throughout  the  night,  until  7  a.  m,  Sunday,  the  21st,  when,  the  commander  of  the 
gunboat — no  doubt  observing  the  insurgents  busy  at  the  mounting  of  a  heavy  gun — 
left  his  anch  rid  steamed  out  I  firing  ceased,     Without  exaggera- 

tion, there  certainly  were  tired  during   the  twenty-one   hours  of  the  engagement 
over  [0,000  shots  of  all  arms,  but   the  lirit  terribly  wild.     My  own  hou 

though  entirely  out  of  tin-  proper  rai  ire     was  stru<  k  thre<  times  and  so  were 

a  great  many  others  on  the  point  here,  entirely  out  ol  the  range  ol  firing. 

<m  ■   quantit)   ol  ammunition  expended  and  the 

th  of  time  the  firing  from  both  ted,  the  dan  1  mall  and  in  the  1  ity 

falls  mostly  upon   the  ;  mtry     where  most  ol  the  -.hots 

from  the  big  guns  went     I  have  m  ird, 

In  conclusion,  1   bej  ty  that  this  civil  war  was  begun  in  Octobei  and 

this  small  city,  not  fort  the  maj<  the*  inhabitants  an 

eign<  n  taken  ■  and  bombarded  tw 

thru,  .,.  .■  nd  to  th-  e  and  distn         f  Ameri- 

can ■  it  /■  1       who  hold   pro|  millioi 

dolla  nd  I  think  it  rathei  hard  1  h 

■  th,-  mi  ■  ral,  who  fights  I 

man  thai  run  away, 

I  n 

1     (      Rei 


COM    II   Sli  IN. 

Ii  may  be  necessary  to  consider,  in  the  future,  the  question  of 

con  tit 'I  of  the  custom-houses.  This  could  he  done  under  present  con- 
ditions without  the  aid  of  the  United  States  Army,  bul  it  would  be 
necessary  to  keep  a  marine  guard  at  each  port  of  entry  for  several 
months. 

It  is  important,  however,  at  once  to  create  an  independent  diplo- 
matic post  at  Santo  Domingo  City  and  put  it  in  charge  of  a  discreet, 
experienced,  capable  man.  Mr.  Powell  is  needed  in  Haiti  and  he 
has.  1  think,  been  too  lout;-  in  the  Dominican  Republic — though  I  do 
not   mean    this   observation    to   be   a   reflection    upon    his   official    or 

personal  conduct. 

Francis  B.    Loomis. 


EXHIBIT  A. 

[Inclosure  to  Dispatch  No.  6SS.— Santo  Domingo  Series.] 
Mr.  Bass  to  Mr.  Powell. 

S  \n  Pedro  di   Mai  oris, 

Dominican  Republic,  December  u.  i~. 

Sir:  Permit  me  to  present  for  your  urgent  and  most  serious  consideration  the 
ideas  herein  expressed. 

This  country  is  on  the  eve  of  a  desperate  and  sanguinary  struggle,  and  there  is 
pressing  danger  not  only  to  proprietary  interests,  but  personal  safety,  for  there  is  a 
large  element  in  the  files  of  the  desperate  party  leaders. 

I  do  not  wish  to  be  considered  as  an  alarmist,  but  you  will  concede  that  my  long 
residence,  extensive  investments,  and  close  contact  with  all  classes  of  the-  natives, 
as  well  as  with  the  very  limited    fori  ment  here,  afford    me   the   means  of  ac- 

quiring a  definite  knowledge  of  the  actual  conditions  of  this  country. 

You,  as  United  States  minister,  have  just  passed  through  what  may  have  ap- 
peared to  you  as  but  a  burlesque  of  war.  It  was  merely  the  Governmi  nl  fai 
bottled  up  in  the  city  and  besieged  at  a  distance  for  nearly  a  month  and  accom- 
panied by  almost  no  loss  of  life.  The  besiegers  bad  but  one  purpose  in  view,  viz, 
to  overthrow  the  Government.  They  represented  a  temporary  unity  of  discon- 
tented factions,  who  could  readily  agree  upon  one  cours  tion,  which  u.i-*. 
that  under  the  plea  of  saving  the  country  it  was  ry  to  first  overthrow  the 
rnment  and  to  then  decide  wh  ion  was  to  usurp  control  of  the  custom- 
houses of  the  country.  The  first  part  of  thi  imme  has  been  carried  out,  but 
the  second  remains  to  be  gone  through. 

The  Government   has  been  overthrown  and  a  tempoi  ed  Government 

has  come  into  control,  and  unfortunately  this  temporary  Government  is  not 
I  of  anj  strong  em, ugh   to  retain   pow  nst,  n"i  the  faction 

overturned  (the  late  three  months'  Constitutional  Government),  but  the  remainder 
of  th'  uld   not  ai i ive  upon  ii,  <    at  an  i 

enough  date  to  prevent  the  man  who  headed  the  late  outbreak  from  Be<  uring  imme- 
ntrol  of  the  '   the   President  ol   th<    Provisional 

which  is  but  the  same  group  •■•  itituted  the  Revolutionar)  i 

ernmenl    prior  to  th  G        ral  Gil.     1  he 

uns<  I  popu 

but  to  make  the  control  of  the  Pi  nal  President  a  affair,     In  othet 

u  ho  is  to  be  the 

•    ted  Stan  gnize 

the  Provisional  G  and 

nt  with  its  Pi 
dent  |is  will  be  d<  la  j  ed 

and   theii    ;  i  mote      Any  diploi 

i  •     .  • .     'i  nmenl 

by  thi  pitate  an 

ing,      i  op  and  will   not   be  ab 


28 

operate  if  a  fratricidal  contest  is  started  during  the  few  coming  months— say,  three. 
The  world  has  no  idea  oi  what  the  American  interests  in  this  country  have  been 
■  I  upon  to  p.iss  through  in  the  last  few  yens: 

i      1  here  was  the  long  regime  oi  the  late  President  Heureaux; 

2.  rhe  short  term  ol  Government  oi  General  Jiminez,  who  collected  .i  Congress 
during  his  term  of  office,  was  overthrown,  and  is  now  .i  candidate  for  th<-  l'resi- 
dency,  be  it  elected  or  provisional; 

;,.  There  was  the  short  term  oi  Gen.  Horacio  Vasquez,  under  whose-  name  a 
powerful  faction  barks  certain  candidates  for  the  control  of  the  country; 

4.  There  was  the  short  term  of  Gen.  A.  Wos  y  Gil,  whose  administration  has 
just  been  overthrown;  and 

?.  There  is  now  tin-  actual  Provisional  President,  who  is  a  candidate  for  the 
elective,  or  otherwise,  Presidency,  and  with  a  very  powerful  following. 

There  are  in  the  field  at  least  six  candidates,  who  can  form  three  couplets  for 
President  and  Vice-President,  and  they  form,  or  head,  three  distinct  factions  be- 
sides the  faction  just  deposed.  Xo  two  factional  leaders  can  unite.  It  is  a  three- 
cornered  and  sanguinary  affair  that  is  expected. 

(</)  One  faction  is  in  control  of  the  capital  and  this  peaceful  port  of  industry 
(Macoris).  It  is  headed  by  the  Provisional  President,  who  has  all  the  arms  and 
ammunition  at  the  capital  and  is  supported  by  an  extensive  following,  which  the 
immediate,  though  recognized  as  temporary,  patronage  naturally  prompts  adher- 
ence to. 

(/>)  There  is  the  faction  known  as  the  followers  of  the  Government  which  pre- 
ceded the  last  one  overthrown.  It  is  known  as  the  Horacitas,  though  Gen.  Horacio 
Vasquez  himself  is  a  sick  man  and  no  longer  capable  of  taking  the  field.  This  ele- 
ment is  opposed  to  General  Jiminez,  whose  Government  is  but  lately  overthrown, 
and  at  the  same  time  not  to  be  reconciled  by  any  retention  of  power  by  the  existing 
Provisional  Government. 

(c)  There  is  the  regular  Jiminestas,  or  followers  of  General  Jiminez.  This  is  a 
powerful  faction.  It  openly  declares  that  if  Jiminez  does  not  secure  the  Presidency 
they  will  at  once  take  the  field.  This  faction  boasts  of  being  powerfully  armed, 
located  in  the  northwest  portion  of  the  country  known  as  the  Monte  Christi  district. 

The  leaders  and  lieutenants  of  the  various  factions  are  determined  men,  and 
their  followers  are  well  armed  with  modern  weapons  and  ammunition  so  bounti- 
fully distributed  by  both  the  late  Government  and  the  leaders  of  the  late  uprising, 
and  which  arms  were  not  collected  prior  to  the  disbandment  of  the  various  forces 
by  the  existing  Provisional  Government.  As  no  one  paid  the  troops,  each  man 
could  not  be  refused  permission  to  carry  his  rifle  home,  together  with  all  the  ammu- 
nition that  he  could  carry  home.  These  rifles  are  not  antiquated  weapons,  but 
Remingtons,  Mauser  carbines,  and  Remington-Mausers  (the  latest  arm  introduced 
into  these  countries,  which  is  a  Remington  carbine  carrying  a  regular  Mauser  car- 
tridge). The  possessors  of  these  weapons  are  ready  to  take  the  field  at  any  moment 
and  are  flushed  with  the  late  triumph  of  having  overthrown  the  Government.  They 
are  not  interested  in  any  other  idea  than  that  they  have  just  demonstrated  that  they 
can  overthrow  the  Government,  and  are  ready  and  waiting  to  prove  that  they  can 
repeat  the  act  when  called  upon  shortly.  They  at  present  are  not  concerning  them- 
selves about  work,  but  resting  after  the  late  campaign  and  waiting  to  take  the  field 
afresh;  they  well  know  that  there  are  several  candidates  for  the  Presidency,  and 
that  they  will  be  shortly  called  upon  to  take  the  field.  If  you  of  the  outside- 
world  ask  for  what  compensation,  I  can  truthfully  state,  An  opportunity  to  acquire 
a  higher  military  title  than  that  which  they  have  just  acquired — for  instance,  one- 
campaign  of  government  overthrowing  affords  the  grade  of  captain;  two,  of  colonel; 
three,  of  commandant;  and  four,  of  general. 


29 

The  last  government-overthrowing  contest  confined  its  operations  to: 

(a)  Besieging  and  firing  upon  the  fort  at  Puerto  Plata. 

(b)  Besieging  and  firing  upon  the  fort  at  the  inland  city  of  Santiago. 

(V)  Besieging  and  firing  upon  the  seaport  and  capital  (Santo  Domingo  City). 

(</)  The  bombardment  of  Macoris,  after  its  abandonment  by  the  Government 
man-of-war. 

In  each  instance  the  Government  gave  up  and  the  losses  were  light.  Through- 
out the  rest  of  the  country  there  was  no  indication  of  any  disturbance  and  every- 
thing remained  in  a  most  peaceful  and  orderly  state,  owing  to  the  fact  that  they 
were  merely  engaged  in  overthrowing  the  Government  and  had  not  as  yet  entered 
upon  the  task  of  selecting  a  President;  for  in  this  country,  as  you  know,  the  Presi- 
dent and  his  friends  constitute  the  Government. 

In  all  seriousness,  I  desire  to  communicate  to  you  that  there  is  every  reason  to 
expect,  not  monthly  or  weekly,  but  daily,  that  from  half  a  dozen  scattered  localities 
at  once  armed  bands,  each  headed  by  its  local  chief,  will  arise,  and  each  hurrahing 
for  some  faction  and  at  the  same  time  engaged  in  what  they  consider  an  easy  task — 
the  overthrowing  of  the  Provisional  Government — for  these  people  are  indifferent 
whether  it  is  a  Provisional  or  Constitutional  Government  which  is  to  be  overthrow  n. 
When  two  of  these  bands  meet  there  is  going  to  be  trouble,  and  the  trouble  is  not 
going  to  be  confined  to  any  one  locality.  Armed  bands  must  forage;  foraging 
prompts  pillage;  pillage,  arson  and  murder  to  all  in  their  path.  In  order  to  demon- 
strate that  whoever  may  be  the  governor  of  this  district  lie  can  not  maintain  order, 
fires  are  put  to  the  cane  fields  of  the  various  estates  (five   times  last   w  i    one 

estate  near  here);  and  as  I  write  news  is  just  at  hand  that  the  fields  of  an  Amei     an 
agricultural  company,  on  another  estate,  w  ut  fortunately  little  damage 

was  done. 

The  financial  condition  of  this  country  is,  as  you  know,  one  ol  hopeless  bank- 
ruptcy; therefore,  whoever  in  the  futun  eds  in  adding  his  name  to  the  his- 
torical roll  of  the  President-,  provisional  orconstitution.il,  is  not  going  to  secure 
sufficient  income  to  defray  the  ordinary  expenses  of  maintaining  law  and  ordei  and 
of  pacifying  his  followers,  let  alone  to  satisfy  any  public  debts,  and  all  unsatisfied 
followers  will  promptly  join  the  great  i  those  ready  to  be  led  to  once  more 
demonstrate  that  they  can  overthrow  any  government. 

During  the  late  n  erthrow  th<  nment,  the  foreign  pow 

indeed  tardy  in  having  men-of-war  at  hand  to  preserve  order.  It  was  not 
until  you  and  the  other  diplomats  representatives  had  been  bottled  up  for  days  in 
the  capital  that  events,  by  no  mean  any  provision  adopted  in  antici- 

pation, permitted  cabling  foi  n  ir.     Was  u  not  a  chance  visit  ol  a  French 

man-of-war  to  the  port  ol  Santo  Domingo  that  made  it  possible  to  communicate 
with  the  rest  of  the  world  and  brought  first  the  German  vessels  from  Si     I  nomas 

and   lastly  the  Ameril  an   n; 

I  well  understand  that  the  Government  ol  the  United  states  can  not  at  an  hour's 
noti.  ■  ha  ma  •  :  that  it  tak< 

ted;  but  this  countrj  and  what  the  native 

<  an  do  in   four  da  I  he  late  (  ...\  ei  nment.  I 

blockading  tan  and  n  shipping,  and  men-of-wai 

were  at  ham  ft  he  t  wo  nal  ons.     In  the 

,  om  ii  kade  and  th<  u  will 

but  the  w  i  nd  many 

other-  enter)  U    hand, 

although  ■ 

You  ;.  ■  [al  to  the  i  >utside  wot  Id 

li  the  men  y  ol  a  ny 


3° 

throughout  the  trackless  forests.  When  the  next  uprising  takes  place  those  in  the 
interior  will  promptly  cut  the  wires. 

What  is,  in  my  humble  opinion,  and  shared  in  by  everyone  with  interests  here 
with  whom  1  have  lately  conversed,  most  necessarj  al  once  is  that  the  United 
States,  01  some  othei  powei  01  combination  of  power--,  maintain  at  least  three 
men-of-wai  on  the  coast  of  this  political  volcano  until  the  existing  state  of  a<  tuaJ 
chaos  has  become  straightened  out.  The  mere  presence  of  these  men-of-war  would 
suffice  to  prevent  active  fratricidal  warfare;  for,  as  stated,  the  prospective  out- 
break is  not  a  [evolution   operating  against  an  established  Government,  but  is  to 

be  a  factional  contest  as  to  which  party  of  three  or  more,  by  force  of  arms,  is  to 
secure  control.  At  present  the  leaders  of  the  various  fat  tions  are  loud  in  the  cry 
for  harmony,  union,  and  peace.  Peace  is,  next  to  money,  the  one  thing  desired; 
for  it  is,  in  evidence  to  the  natives  themselves,  almost   the  unattainable. 

One  man-of-war  should  he  stationed  at  Puerto  Plata.  It  could  there  command 
that  important  seaport,  the  neighboring  inland  city  of  Santiago,  and  the  near-by 
port  of  Monte  Christi. 

One  man-of-war  should  he  stationed  at  the  head  of  the  Bay  of  Samana  at  the 
port  of  Sanchez.  This  is  the  outlet  of  the  railroad  that  runs  from  the  port  up  the 
valley  westward  toward  the  interior. 

(  'lie  man-of-war  should  he  stationed  at  the  capital  city  of  Santo  Domingo  to 
look  after  Azua,  the  city,  and  the  near-by  port  of  Macoris.  This  latter  port  has 
over  {5,000,000  worth  of  American  capital  invested  in  sugar  estates  within  a  dis- 
tance of  10  miles  of  the  port  and  has  many  American  residents.  These  investments 
require  order  for  their  preservation  and  peace  for  their  operating. 

The  writer  is  well  aware  that  the  United  States  has  no  intention  of  annexing  this 
Republic;  but  you  must  be  aware  that  the  various  factional  leaders  play  upon  the 
sentiments  of  their  followers  and  maintain  a  lively  anti-American  sentiment, 
erous  to  both  life  and  property  in  a  moment  of  an  uprising  such  as  is  expected 
daily.  In  this  matter  of  agitating  anti-American  sentiments,  European  resident 
merchants  are  not  exempt  from  lending  their  silent  and  constant  influence,  for  the 
frequent  changes  of  Government  afford  opportunities  for  exorbitant  loans  and  dis- 
counting of  custom  charges. 

There  is  no  "  Piatt  amendment  "  for  Santo  Domingo.  There  is  nothing  to  prompt 
the  natives  to  hesitate  before  following  their  most  destructive  and  sanguinary 
promptings.  You  well  know  that  the  man-of-war  of  the  late  constitutionally 
established  Government  deliberately  shelled  this  undefended  seaport  town  of 
Macoris  with  hut  two  and  one-half  hours' notice  and  unaccompanied  by  any  attempt 
to  land  forces  either  before  or  after  the  bombardment;  also,  that  if  more  damage 
was  not  done  it  was  due  solely  to  the  faulty  marksmanship  of  the  gunboat.  This 
in  no  wise  lessens  the  outrage  done  to  a  civilized  community,  and  it  is  understood 
by  the  natives  that  the  representatives  of  foreign  powers  did  and  have  not  reproved 
the  Government  that  did  it,  or  its  successor,  the  provisional  one.  On  the  contrary, 
it  is  known  that  the  incident  was  lightly  considered,  as  the  damage  was  slight  and 
no  human  lives  were  sacrificed. 

The  Americans  here  are  prompted  to  believe  that  you  are  conversant  to  a  great 
extent  with  what  has  been  expressed  in  the  foregoing,  and  they  at  present  are 
largely  concerned  at  the  outlook. 

Two  questions  confront  them: 

1.  Are  the  advance  agents  of  American  trade  and  industry  in  this  country  de- 
serving of  timely  personal  and  proprietary  protection,  or  do  they  forfeit  all  claim 
to  suitable  protection  when  they  invest  their  capital  in  a  near-by,  though  foreign, 
country  ? 

2.  Are  such  Americans  and  their  interests  to  be  first  sacrificed  in  order  to  warrant 


3i 

the  sending  of  men-of-war  to  these  shores  to  advance  claims  againt  a  bankrupt 
country  in  the  interest  of  the  heirs  of  those  sacrificed  and  the  assigns  of  ruined 
enterprises? 

The  present  moment  is  no  time  to  diplomatically  consider  whether  the  Provi- 
sional Government  is  going  to  acknowledge  any  pecuniary  claims  and  devise  means 
for  their  settlement.  Neither  is  it  any  time  to  entertain  ideas  relative  to  the  acqui- 
sition of  the  Bay  of  Samana  by  the  Government  of  the  United  Slates  in  order  to 
anticipate  any  European  designs.  The  immediate  restoration  and  maintenam 
order  is  the  paramount  consideration;  for  all  attempts  to  collect  daily  increasing 
foreign  claims  are  abortive  if  industry  and  commerce  are  not  to  be  allowed  to  pro- 
ceed and  the  custom-houses  (the  only  source  of  public  income  as  well  as  prompt- 
ings of  political  strife)  are  not  permitted  to  produce  revenue. 

Now  is  the  moment  to  locate  at  least  three  men-of-war  on  the  coast  and  an- 
nounce to  the  contending  factions  that,  although  there  is  no  Piatt  amendment, 
upon  the  first  promiscuous  use  of  firearms  order  will  be  maintained  by  foi 
force  until  the  natives  will  have  decided  as  to  which  candidate  is  to  be  the  Presi- 
dent and  which  faction  is  to  be  in  control  of  the  Government,  and  that  meanwhile 
modern  industries  must  be  allowed  fo  continue  to  operate  and  life  and  property 
respected. 

Many  of  the  leading  natives  who  can  afford  it  are  preparing  to  leave  the  coun- 
try, while  others  not  so  circumstanced  confess  that  the  country  has  reached  that 
stage  where  "the  country  is  ungovernable.  ' 

Upon  you,  Mr.  Minister,  rests  an  enormous  responsibility  at  this  time.  As  tin- 
diplomatic  representative  of  the  United  States,  many  of  whose  citizens  have  large 
invested  capital  here,  their  families  and  American  employees,  you  are  looked  to 
to  take  the  necessary  precautions  to  avoid  an  unnecessary  amount  of  bloodshed 
among  the  natives  and  perhaps  foreign  element. 

The  present  is  respectfully  submitted  to  you  in  all  seriousness  and  respect.  If 
in  any  expression  you  may  interpret  an  element  of  lack  ol  se,  such 

has  not  been  my  intention  and  I  beg  that  you  will  overlook  sai 

A  very  grave  danger  threatens    my  large  interests    in   this  country.      If   the  out- 
break takes  place  the  si.  ites  can  not  make  their  i  rops.      If  th<-  <  rops  an 
made  there  will  be  many  ruined  Ameri  lin  made 
operative  with  a  i  laim  against  this  Government  a-^  its  work             tital. 

ice  the  outbreak  tak  I   men-of-war  will  do  us  no  good; 

we  will  have  been  ruined  in  the  land  of  Man. ma  by  foreign  d< 

\\   i    L.  H  i 
To  the  Honorable  Wm.  I 

I  'in.' 


i:\iiimi    B. 

I     IITBD   STA1 

Mr.  Si  '  .  omrounli  ation  of 

the  arrat  '  !  the 

f  the  Dominican  Republii ,  for  the  pur- 
of  submitting  l  nlv«  to  the  payment,  by  t he 


J  ■> 

latter  country,  of  a  sum  in  settlement  of  the  claim  oi  the  Shu  Domingo  Improve- 
ment Company,  of  New  York,  has  had  to  considei  the  consequences  which  might 
result  from  the  said  arrangement  in  relation  to  the  preexistent  rights  of  French 
holders  ol  Dominican  securities. 

They,  together  with  the  Belgian  holders,  have  in  fact  concluded  with  the 
Dominican  Republic  a  convention,  undei  date  of  June  3,  [901,  by  virtue  of  which 
customs  dues  collected  at  the  ports  oi  Santo  Domingo  and  Macoris  are  expressly 
set  apart  in  guaranty  oi  the  payment  of  the  Dominican  foreign  debt. 

The  Dominican  Government  has  thus  alienated  in  favoi  of  the  French  bond- 
holders that  part  of  its  revenues,  and  hence  the  said  part  can  not  be  diverted  from 
its  original  destination  in  favor  oi  other  creditors.  In  order  to  dispel  any  misappre- 
hension on  this  point  and  to  prevent  all  difficulties,  I  have  received  instructions  to 
remind  the  Federal  Government  of  the  existence  oi  .1  convention,  signed  two  years 
whi(  h  sanctions  the  rights  held  by  the  French  holders  of  Dominican  securities 
on  the  customs  receipts  of  the  ports  of  Santo  Domingo  and  Ma<  oris. 

I  have  to  add,  for  all  practical  purposes,  that,  apart  from  the  amount  due  to  the 
French  holders  of  the  Dominican  securities,  there  are  other  indemnity  claims, 
notably  those  presented  by  the  Compagnie  Francaise  des  Cables  Telegraphiques, 
for  losses  it  sustained  on  account  of  revolutionary  events,  especially  those  of  1  3gg 
1902,  which  are  such,  both  for  their  origin  and  old  standing,  as  to  call  for  an  early 
settlement.  The  interested  parties  have  taken  steps  to  that  end  with  the  Govern- 
ment of  the  Dominican  Republic. 

Be  pleased  to  accept,  etc., 

Ji  SSERAND. 


EXHIBIT  C. 


Na  riONAL  Association 

ok  the  French  Holders  of  Foreign  Securities, 

5  rue  Gaillon. 

Defense  Commii  i  i 
of  the  Holders  of  Dominu  \%   B01  □ 

Paris,  February  12,  igoj. 

The  coupon  maturing  in  April,  1902,  of  the  stamped  exterior  Dominican  debt  is 
about  being  paid  by  the  Credit  Lyonnais,  at  the  rate  of  3.85  francs  per  bond  of 
,£20,  according  to  the  announcement  hereinafter  made. 

We  think  it  will  be  useful  to  give  the  bondholders  some  explanations  as  to  the 
delay  in  this  payment  and  as  to  the  facts  that  have  occurred  since  the  approval  by 
the  Dominican  Congress  of  the  arrangement  concluded  at  Paris  and  at  Antwerp,  in 
the  month  of  June,  1901,  between  the  delegate  of  the  Dominican  Government  and 
the  representatives  of  the  bondholders. 

When  that  arrangement  became  executory,  the  National  Association  undertook 
the  appointment  of  the  French  agent  at  Santo  Domingo.  The  importance  of  the 
choice  to  be  made  was  all  the  greater  because  there  was  a  financial  "  controle"  to 
be  organized  upon  quite  new  bases. 

At  our  request  the  Minister  of  Foreign  Affairs  was  willing  to  authorize  an  official 
of  his  Department.  M.  Maurice  Charpenticr,  to  accept  the  post  of  delegate  for  the 
French  holders,  and  M.  Charpentier,  having  successively  exercised  the  functions  of 
chancellor  and  vice-(  onsul  at  Santo  Domingo,  he  was  well  qualified  to  inspire  con- 
fidence.     He  went  to  his  post  in  Santo  Domingo  in  the  month  of  April  last. 


OJ 

At  that  time  no  remittance  had  yet  been  made  by  the  Dominican  Government 
to  the  general  Belgian  agent,  who  had  been  acting  since  the  month  of  November. 

The  revolution  which  overthrew  President  Jiminez  in  the  month  of  May.  carry- 
ing into  power  General  Vasquez,  was  either  a  reason  or  a  pretext  for  the  Govern- 
ment of  Santo  Domingo  to  delay  the  execution  of  its  engagements,  and  it  was  only 
at  the  beginning  of  July,  1902,  that  the  first  receipts  from  the  agents  of  the  bond- 
holders were  deposited  in  the  banks  of  Europe. 

The  remittances  of  the  Government  were  made  after  that  with  extreme  slow- 
ness, either  because  of  the  political  events  of  which  the  Dominican  Republic  has 
been  the  theater  and  which  had  an  immediate  effect  upon  the  financial  situation,  or 
because  of  the  incessant  difficulties  which  have  surrounded  the  agents  in  the  execu- 
tion of  their  task. 

We  ought  particularly  to  refer  to  one  important  incident  the  arrangement  of 
which  is  still  in  suspense. 

On  the  21st  of  last  June  the  Minister  of  Finances  promulgated  a  decree  by  the 
terms  of  which  he  granted  to  the  interior  debt  an  "apartado,"  or  privileged  guar- 
anty of  5  per  cent,  to  be  collected  upon  the  amount  of  the  customs  at  the  capital. 
This  measure  constituted  a  formal  violation  of  the  arrangement  of  1901,  which 
granted  to  the  holders  of  the  exterior  debt  the  whole  of  the  customs  produced  by 
the  port  of  Santo  Domingo  City,  with  the  sole  reservation  of  the  "apartados" 
created  before  the  arrangement  was  made  (art.  2).  The  National  Association,  by 
agreement  with  the  Antwerp  committee,  immediately  addressed  a  joint  protest  to 
the  Dominican  Government  against  this  violation  of  your  rights. 

The  Dominican  Government  then  proposed  to  us  that  it  should  be  submitted  to 
arbitration,  which  we  refused,  believing  that  such  a  flagrant  infringement  of  the 
clauses  of  our  contract  could  not  give  rise  to  any  question  of  interpretation  upon 
which  an  arbitration  could  be  i- 

The  minister  had  to  yield  to  the  evidence  and  promised  to  withdraw  his  decree. 
In  case  it  shall  not  be  done  promptly,  in  accordance  with  that  promise — of  which 
we  still  await  the  fulfillment — the  National  Association  will  not  fail  to  renew  its 
claim  by  asking  for  diplomatic  intervention. 

The  aggregate  of  the  remittances  received   by  the  agents  ol    the  bondholders 
from  the  1st  >.i   October,  1901,  to  November  30,  1 902,  amounted   to  $125,056,  while 
r  the  terms  of  the  arrangement   the  remittances  should  have  reached  a  mini- 
mum oi  f  000  francs)  during  that  period  ol  fourteen  month'-. 

On  the    "ih  of  No  last  there  was  in  the  banks  in  Europe,  to  the  credit  of 

ant    for  the  coupon  ol   April,  [902,  a   sum   ol    -  having   produced 

ram  I  therefore  la<  king  at  thai  time  more  than  150, francs 

before  the  payment  could  be  n,  and  new  delays  w<  reseen,     The  Domini- 

can Government  having  then  proposed  to  the  committees  to  turn  ovei  to  the  credit 
of  the  coupon  of  April,  1902,  the  sums  deposited  in  Europe  foi  the  purchase  (redemp- 
k   <  oupons,  say,   about    1  to, 000    francs,  the 

comn  thought,  in  view  of  th<  lay  in   the   payment   ol   the 

remittances,  thai  il  was  to  tl  nd holders  to  accept  thai  proposition 

in  order  to  hasten   l  the  coupon;  but  it  was   formally  stipulated 

that  th>-  funds  foi  the  taking  up  ol  the  bai  i>  1  oupons  should  I"-  again  made  up  oul 
,,f  tl..  lai  •  ami  oupon  payment. 

We  ha  '  thai  the  minimum  amount  ol  thi  01nu.il  remittances 

being  to  the  terms  oi  the  arrangement    •  0     ih<-    igency  expenses 

;i,  Santo  Don  lefault  for  a  I  we  1  an  take  an  .»  basis  foi  the 

distribution  .1  mhii  correspi  nding  to  *    .  ai  the  rati    ol 

frani 

D 


34 

A-  soon  as  the  deposits  in  the  European  banks  charged  with  the  service  "f  the 
debt  reached  this  figure,  the  committees  arranged  with  the  financial  agent  of  the 
Dominican  Government  in  Europe  and  with  these  banks  to  proceed  with  the  pay- 
ment  <>f  the  coupon,  the  amount  of  which,  after  deducting  the  expenses  of  the  opera- 
tion, have  been  fixed  thus  al  3.85  francs, 

The  latest    news  which  we  have   received  does  not    permit  us   to  count  upon    the 

regularity  of  the  payments  by  the  Dominican  Government;  the  agents  will  there- 
fore  have  to  redouble  their  efforts  to  secure  the  execution  of  the  arrangement  of 
1901. 

The  bondholders  may  be  assured  that  tin-  National  Association  will  defend  their 
rights  and  will  sustain  their  representatives  in  the  accomplishment  of  their  task 
with  every  means  at  its  disposal. 

A   •  ept  the  assurance  of  our  distinguished  consideration. 

(For  the  Association)     TONY  CHAUVIN, 

Director. 


Financiai    Agency  of  the  Dominican  Republic  in  Europe. 
{Service  of the  Exterior  Unified  Debt — Stamped  /go/.) 

The  coupon  No.  16,  of  the  bonds  of  the  old  Dominican  loan,  2^(4  per  cent 
deferred),  and  the  coupon  No.  17,  of  the  old  Dominican  loan,  French-American 
reclamation  consuls,  will  be  payable  from  the  gth  of  February,  1903,  at  the  rate  of 
3.85  francs  for  the  bonds  of  ^20  and  10.25  francs  for  the  bonds  of  ^100.      *      *      * 

At  the  Credit  Lyonnais,  Boulevard  des  Italiens,  Paris. 

At  the  Credit  Lyonnais,  40  Lombard  Street,  London,  E.  C. 

At  the  Kanque  d'Anvers,  Antwerp. 

At  the  Banque  de  Paris,  et  de  Pays  Bas,  Brussels  and  Amsterdam. 

Lixas  T.  Gibb 
fiscal  Agent  of  the  Dominican  Government  in  Europe. 


f  APR  5   1948  % 


